On October 05, 20x4, PPG Trading Co. consigned 30 computer units, costing P8000 each to Pampanga Inc. the units were to be sold on either cash or credit basis on commission of 15% of net sales. The consignor paid freight of P1800 on the shipment. On November 11, the consignee received the goods. Sales were made as follows. October 15: 10 units for cash at 13,000 each October 28: 12 units on account at 14,000 each On October 31, 20x4, collections on accounts amounted to 95,000 and an allowance of 2000 was given to charge customer for a defective unit. On November 15, 20x4 , a receivable balance of 7000 was determined to be uncollectible. On december 21, 20x4, the consignee made the proper remittance. The amount due from BB Inc. is: The consignment profit is: The cost of inventory on consignment is:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
On October 05, 20x4, PPG Trading Co. consigned 30 computer units, costing P8000 each to Pampanga Inc. the units were to be sold on either cash or credit basis on commission of 15% of net sales. The consignor paid freight of P1800 on the shipment. On November 11, the consignee received the goods. Sales were made as follows. October 15: 10 units for cash at 13,000 each October 28: 12 units on account at 14,000 each On October 31, 20x4, collections on accounts amounted to 95,000 and an allowance of 2000 was given to charge customer for a defective unit. On November 15, 20x4 , a receivable balance of 7000 was determined to be uncollectible. On december 21, 20x4, the consignee made the proper remittance.
The amount due from BB Inc. is:
The consignment profit is:
The cost of inventory on consignment is:
Step by step
Solved in 4 steps
