Yahama Co. consigns bass guitars costing P500,000 to a consignee. Yahama incurs P20,000 freight in transporting the goods to the consignee's place and P5,000 repair costs for minor damages during shipment. To induce the consignee in signing the consignment contract, Yahama pays the consignee an advanced commission of P100,000 to be deducted from the consignee's actual commission on future sales. How much is the cost of the consigned goods in Yahama's and the consignee's books? Yahama Consignee A. 520, 000 0 B. 525,000 0 C. 520, 000 100,000 D. 625,000 0
Yahama Co. consigns bass guitars costing P500,000 to a consignee. Yahama incurs P20,000 freight in transporting the goods to the consignee's place and P5,000 repair costs for minor damages during shipment. To induce the consignee in signing the consignment contract, Yahama pays the consignee an advanced commission of P100,000 to be deducted from the consignee's actual commission on future sales. How much is the cost of the consigned goods in Yahama's and the consignee's books? Yahama Consignee A. 520, 000 0 B. 525,000 0 C. 520, 000 100,000 D. 625,000 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Accounting for Special Transactions
Consignment Sales
PROBLEM 4: MULTIPLE CHOICE - COMPUTATIONAL
- Yahama Co. consigns bass guitars costing P500,000 to a consignee. Yahama incurs P20,000 freight in transporting the goods to the consignee's place and P5,000 repair costs for minor damages during shipment. To induce the consignee in signing the consignment contract, Yahama pays the consignee an advanced commission of P100,000 to be deducted from the consignee's actual commission on future sales. How much is the cost of the consigned goods in Yahama's and the consignee's books?
|
Yahama |
Consignee |
|
| A. |
520, 000 |
0 |
| B. |
525,000 |
0 |
| C. |
520, 000 |
100,000 |
| D. |
625,000 |
0 |
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