Integrity Company consigned 2,000 units of special equipment, costing P1,200 each to Honesty  Company to be sold at P1,600 per unit. The agreement calls for 15% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Integrity paid P20,000 freight and insurance of P10,000 for the shipment. At the end of the month, Honesty remitted the amount due to the consignor after deducting commission of P360,000 and advertising costs of P20,000. Record shows that 300 units were left to the consignee and some units were returned to the consignor. Integrity paid the cost of shipment of the returned units amounting to P5,000. Determine the consignment income.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Integrity Company consigned 2,000 units of special equipment, costing P1,200 each to Honesty  Company to be sold at P1,600 per unit. The agreement calls for 15% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. Integrity paid P20,000 freight and insurance of P10,000 for the shipment. At the end of the month, Honesty remitted the amount due to the consignor after deducting commission of P360,000 and advertising costs of P20,000. Record shows that 300 units were left to the consignee and some units were returned to the consignor. Integrity paid the cost of shipment of the returned units amounting to P5,000.

Determine the consignment income.

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