Problem 11 The following consignment-related transactions were made by Juno Company in December 2020: Consigned to Atlan Company 10,000 units of tools at P500 each and paid freight of P50,000. Each unit costs P200. They agreed that Atlan’s commission is P10 per unit. By the end of the year, only 2,000 units remained unsold by Atlan. Consigned 5,000 units of tools to Skye at P600 each and paid freight of P50,000. Total cost of the consigned items was P1,500,000. Skye agreed to undertake the consignment if she will get a commission of 10% per unit sold. By the end of the year, only 2,000 units were sold by Skye. Assuming that Juno Company maintains its inventory records using the perpetual inventory system, prepare the journal entry to record the sales when Atlan and Skye remitted their sales. Prepare separate entry for each consignee
Problem 11
The following consignment-related transactions were made by Juno Company in December 2020:
Consigned to Atlan Company 10,000 units of tools at P500 each and paid freight of
P50,000. Each unit costs P200. They agreed that Atlan’s commission is P10 per unit. By
the end of the year, only 2,000 units remained unsold by Atlan.
Consigned 5,000 units of tools to Skye at P600 each and paid freight of P50,000. Total
cost of the consigned items was P1,500,000. Skye agreed to undertake the consignment
if she will get a commission of 10% per unit sold. By the end of the year, only 2,000 units
were sold by Skye.
Assuming that Juno Company maintains its inventory records using the perpetual inventory
system, prepare the
Prepare separate entry for each consignee
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