On October 1, 2022, the Intra Main Office established a sales agency in Cebu. -The main office sent samples of its merchandise amounting to P8,400 and working fund amounting to P72,000 to be maintained on the imprest basis. The samples sent were intended to last until June 1, 2023. -During the first two months of operations, the agency transmitted to the home office sale of goods costing P291,600, but the home office was not able to fill-up 25% of the said transmitted sales order. -Collections from customers amounted to P73,941, net of 2% sales discount. -Payments made by the agency during October and November were as follows: annual rent of P57,600, advertising expense worth P5,600 and utilities amounting to P7,200. -It purchased an equipment worth P9,000 which will be depreciated at 20% per annum. -The gross profit on sales agency order is 20% of sales Net income of the agency for the two months ended November 30, 2022 is:
On October 1, 2022, the Intra Main Office established a sales agency in Cebu.
-The main office sent samples of its merchandise amounting to P8,400 and working fund amounting to P72,000 to be maintained on the imprest basis. The samples sent were intended to last until June 1, 2023.
-During the first two months of operations, the agency transmitted to the home office sale of goods costing P291,600, but the home office was not able to fill-up 25% of the said transmitted sales order.
-Collections from customers amounted to P73,941, net of 2% sales discount.
-Payments made by the agency during October and November were as follows: annual rent of P57,600, advertising expense worth P5,600 and utilities amounting to P7,200.
-It purchased an equipment worth P9,000 which will be
-The gross profit on sales agency order is 20% of sales
Net income of the agency for the two months ended November 30, 2022 is:
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