On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price.
On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price.
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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![On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of
P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred
expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on
the sales price.
How much net income did HBO realize in August on the consignment?
A. 37,500 income
C. 33,500 loss
B. 32,500 income
D. 32,500 loss
What is the total cost of inventory of the unsold handbags?
A. 60,000
C. 71,000
В. 66,000
D. 75,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e26eaa-fc76-4c0d-bd17-dc918892ea31%2Ffd5b8a3e-3096-4a6d-a3f2-bfabdeb1d24f%2Fnxyzprk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of
P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred
expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on
the sales price.
How much net income did HBO realize in August on the consignment?
A. 37,500 income
C. 33,500 loss
B. 32,500 income
D. 32,500 loss
What is the total cost of inventory of the unsold handbags?
A. 60,000
C. 71,000
В. 66,000
D. 75,000
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