On January 1, 2021, VvV Shop received from ABC 300 pieces of bread toasters. VVV was to sell these onconsignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces,vwV had the remaining unsold units repaired for some electrical defects for which he spent P2,000. ABCsubsequently increased the selling price of the remaining units to P330 per unit. On January 31, 2021, VVVremitted P64,980 to ABC after deducting the 15% commission, P850 for delivery expenses of sold units, andP2,000 for the repair of 100 units. The consigned goods cost ABC P200 per unit, and P900 had been paid toship them to Vv Shop. All expenses in connection with the consignment were reimbursable to theconsignee. Determine the value inventory to be presented in the statement of financial Position.

Consignment: A consignment agreement is one in which items are left in the hands of a third party…

On January 1, 2021, ww Shop received from ABC 300 pieces of bread toasters. WV was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, vV had the remaining unsold units repaired for some electrical defects for which he spent P2,000. ABC subsequently increased the selling price of the remaining units to P330 per unit. On January 31, 2021, Vw remitted P64,980 to ABC after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consigned goods cost ABC P200 per unit, and P900 had been paid to ship them to VN Shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial Position.

On January 1, 2021, ww Shop received from ABC 300 pieces of bread toasters. WV was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, vV had the remaining unsold units repaired for some electrical defects for which he spent P2,000. ABC subsequently increased the selling price of the remaining units to P330 per unit. On January 31, 2021, Vw remitted P64,980 to ABC after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consigned goods cost ABC P200 per unit, and P900 had been paid to ship them to VN Shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial Position.

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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