In 20x1, Seth Wholesalers transferred goods to a retailer on consignment. The goods cost P225,000 and are normally sold at a 50% mark-up. Seth paid P5,000 freight cost, while the retailer paid P4,000 advertising and P1,500 freight cost. The parties agreed that Seth Wholesalers would reimburse the cost of advertising and freight paid by the retailer. During the year, the retailer sold 70% of the merchandise at the normal mark-up. The retailer withheld a 12% commission from payment plus the amount reimbursable by the consignor. REQUIRED: 1. Net income recognized by Seth Wholesalers ____________ 2. Amount remitted by the retailer ____________ 3. Value of unsold inventory
In 20x1, Seth Wholesalers transferred goods to a retailer on consignment. The goods cost P225,000 and are normally sold at a 50% mark-up. Seth paid P5,000 freight cost, while the retailer paid P4,000 advertising and P1,500 freight cost. The parties agreed that Seth Wholesalers would reimburse the cost of advertising and freight paid by the retailer. During the year, the retailer sold 70% of the merchandise at the normal mark-up. The retailer withheld a 12% commission from payment plus the amount reimbursable by the consignor. REQUIRED: 1. Net income recognized by Seth Wholesalers ____________ 2. Amount remitted by the retailer ____________ 3. Value of unsold inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 20x1, Seth Wholesalers transferred goods to a retailer on consignment. The goods cost P225,000 and are normally sold at a 50% mark-up. Seth paid P5,000 freight cost, while the retailer paid P4,000 advertising and P1,500 freight cost. The parties agreed that Seth Wholesalers would reimburse the cost of advertising and freight paid by the retailer. During the year, the retailer sold 70% of the merchandise at the normal mark-up.
The retailer withheld a 12% commission from payment plus the amount reimbursable by the consignor.
REQUIRED:
1. Net income recognized by Seth Wholesalers ____________
2. Amount remitted by the retailer ____________
3. Value of unsold inventory ___________
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