The amount remitted by the retailer to the consignor is: the net income earned by the consignor on the shipment is:
The amount remitted by the retailer to the consignor is: the net income earned by the consignor on the shipment is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2020, Shop Wholesalers transferred goods to a retailer on consignment. The goods cost P450,000 and normally sold at a 50% markup based on cost. Shop Wholesalers paid P5,000 for the cost of shipment while the retailer paid P2,800 for advertising and P800 for the cost of freight out. The parties agreed that Shop Wholesalers would reimburse the cost of advertising and freight paid by the retailer. In 2020, the retailer at the normal markup sold 60% of the merchandise, and the balance of the merchandise was returned to the consignor incurring freight of P1,200 paid by the consignor. The retailer withheld a 15% commission from payment plus the amount reimbursable by the consignor.
The amount remitted by the retailer to the consignor is:
The amount remitted by the retailer to the consignor is:
the net income earned by the consignor on the shipment is:
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