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    Aa Consignment Sales 1

    Uploaded by

    Jamie Ramos

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Aa Consignment Sales 1

    Uploaded by

    Jamie Ramos
    14 views1 page

    Original Title

    AA-CONSIGNMENT-SALES-1

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views1 page

    Aa Consignment Sales 1

    Uploaded by

    Jamie Ramos

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    CONSIGNMENT SALES (1)

    Abenson Appliance Center consigned to ABC Marketing 10 units of Sony LCD TV set costing
    P600,000. In addition, Abenson incurred P20,000 representing cost of freight in bringing the
    involved merchandise to the consignee. The consignee is authorized to sell the TV set at
    P80,000 per unit and it is entitled to 10% commission (based on sales) and any reimbursable
    expenses.

    After one month, the consignee rendered an account sales as follows:

    No. of units sold 7 units


    =======
    Amount of sales P560,000

    Less: Charges:
    Commission P56,000
    Reimbursable expenses 3,500 59,500

    Remittance to consignor P500,500


    =======

    Requirements:

    1. Prepare the journal entries on the foregoing transactions.


    2. Compute the net income (loss) on consignment of Sony TV sets.
    3. Compute the cost of inventory on consignment.

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