Ines Company consigned twenty five (25) calculators, with cost of P800 each, to Hola Company for a commission of 10% of selling price. Ines Company paid shipping costs of P1,000 on the shipment. Correspondingly, Hola Company paid P500 on the freight of the shipment. On the last day of the year, Hola Company reported that it had sold twenty (20) of the calculators, fifteen (15) for cash at P1,500 each and five (5) on credit at P1,800 each, of which 25% was collected as down payment. Hola Company incurred P650 for delivery of the sold units and remitted all the cash due. How much is the consignment profit?
Ines Company consigned twenty five (25) calculators, with cost of P800 each, to Hola Company for a commission of 10% of selling price. Ines Company paid shipping costs of P1,000 on the shipment. Correspondingly, Hola Company paid P500 on the freight of the shipment. On the last day of the year, Hola Company reported that it had sold twenty (20) of the calculators, fifteen (15) for cash at P1,500 each and five (5) on credit at P1,800 each, of which 25% was collected as down payment. Hola Company incurred P650 for delivery of the sold units and remitted all the cash due. How much is the consignment profit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ines Company consigned twenty five (25) calculators, with cost of P800 each, to Hola Company for a commission of 10% of selling price. Ines Company paid shipping costs of P1,000 on the shipment. Correspondingly, Hola Company paid P500 on the freight of the shipment. On the last day of the year, Hola Company reported that it had sold twenty (20) of the calculators, fifteen (15) for cash at P1,500 each and five (5) on credit at P1,800 each, of which 25% was collected as down payment. Hola Company incurred P650 for delivery of the sold units and remitted all the cash due.
How much is the consignment profit?
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