G Limited operates a trading business. During the year ended 31 December 2021, G Limited appointed an overseas agent, Javeed, to sell goods on its behalf. G Limited shipped 300 units of inventory costing $115 each to Javeed. G Limited also paid freight charges of $7200. G Limited received a proforma statement from Javeed on 1 January 2022 as follows. $ 63500 Gross sales 254 units at $250 each Goods returned 18 units at $250 each Net sales Import duties Assistant's salary Transportation to warehouse Transportation to customers Advertising Commission 4500 59000 2100 4500 3600 6000 4800 ~~~ ? ? Amount due to G Limited Defects had been found in the returned goods. In the agreement between G Limited and Javeed, it was stated that the commission earned by Javeed would be 8% of sales. Due to the uncertainty in the agreement, Javeed was not sure whether the commission should be based on gross sales or net sales. ?

G Limited operates a trading business. During the year ended 31 December 2021, G Limited appointed an overseas agent, Javeed, to sell goods on its behalf. G Limited shipped 300 units of inventory costing $115 each to Javeed. G Limited also paid freight charges of $7200. G Limited received a proforma statement from Javeed on 1 January 2022 as follows. $ 63500 Gross sales 254 units at $250 each Goods returned 18 units at $250 each Net sales Import duties Assistant's salary Transportation to warehouse Transportation to customers Advertising Commission 4500 59000 2100 4500 3600 6000 4800 ~~~ ? ? Amount due to G Limited Defects had been found in the returned goods. In the agreement between G Limited and Javeed, it was stated that the commission earned by Javeed would be 8% of sales. Due to the uncertainty in the agreement, Javeed was not sure whether the commission should be based on gross sales or net sales. ?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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G Limited operates a trading business. During the year ended 31 December 2021, G Limited appointed an overseas agent, Javeed, to sell goods on its behalf. G Limited shipped 300 units of inventory costing $115 each to Javeed. G Limited also paid freight charges of $7200. G Limited received a proforma statement from Javeed on 1 January 2022 as follows. $ 63500 4500 59000 Gross sales 254 units at $250 each Goods returned 18 units at $250 each Net sales Import duties Assistant's salary Transportation to warehouse Transportation to customers Advertising Commission 2100 4500 3600 6000 4800 ~-~-~~|| Amount due to G Limited Defects had been found in the returned goods. In the agreement between G Limited and Javeed, it was stated that the commission earned by Javeed would be 8% of sales. Due to the uncertainty in the agreement, Javeed was not sure whether the commission should be based on gross sales or net sales.
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