Problem 13-13 (IAA) Wholesome Company sold merchandise on a basis to dealers. The gross profit was 25% above cost. consignment The dealer is paid a 10% commission of the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment activities occurred during the current year: Manufacturing cost of goods shipped on consignment Sales price of merchandise sold by dealers Payments remitted by dealers after deducting commission 8,800,000 9,600,000 6,300,000 What amount should be reported as gross profit or consignment sales? a. 2,400,000 b. 1,920,000 c. 1,700,000 d. 1,220.000

Problem 13-13 (IAA) Wholesome Company sold merchandise on a basis to dealers. The gross profit was 25% above cost. consignment The dealer is paid a 10% commission of the sales price for all sales made. All dealer sales are made on a cash basis. The following consignment activities occurred during the current year: Manufacturing cost of goods shipped on consignment Sales price of merchandise sold by dealers Payments remitted by dealers after deducting commission 8,800,000 9,600,000 6,300,000 What amount should be reported as gross profit or consignment sales? a. 2,400,000 b. 1,920,000 c. 1,700,000 d. 1,220.000

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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