Publisher Co. delivers 1,000 books to Bookstore Co. under a consignment arrangement. The cost per book is P300. Publisher Co. pays freight of P22 per book. Bookstore Co. is entitled to a 20% commission based on the Publisher's suggested retail price. However, Bookstore Co, marks up the Publisher's suggested retail price anyway for another 15%. Six (6) months after the end of the semester, Bookstore Co. remits P245,700 to the Publisher for the sale of 700 books after deduction of 69,300 for the ff: 2% withholding tax based on the Publisher suggested price Bookstores commission Requirements Compute for the amounts to be presented in publisher statement of profit or loss. How much is the ending inventory to be presented in te publishers statement of financial position How much income is recognized by bookstore
Publisher Co. delivers 1,000 books to Bookstore Co. under a consignment arrangement. The cost per book is P300. Publisher Co. pays freight of P22 per book. Bookstore Co. is entitled to a 20% commission based on the Publisher's suggested retail price. However, Bookstore Co, marks up the Publisher's suggested retail price anyway for another 15%. Six (6) months after the end of the semester, Bookstore Co. remits P245,700 to the Publisher for the sale of 700 books after deduction of 69,300 for the ff:
2% withholding tax based on the Publisher suggested price
Bookstores commission
Requirements
Compute for the amounts to be presented in publisher statement of profit or loss.
How much is the ending inventory to be presented in te publishers
How much income is recognized by bookstore
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