Original Cost 10.00 1,000.

00
Inventoriable 10.00 50.00

Consignment Income (Loss)

Sales xxx
COS Original xxx
Inventoriable xxx xxx
GP xxx
Commission xxx
Advertising xxx
Delivery and Installation xxx
Freight (returned units) xxx
Inventoriable (returned unixxx xxx
Consignment Income (Loss) xxx

PROBLEM 1
a Sales 195,000.00 215,250.00
Commission - (20,250.00)
Advertising - -
Delivery and Installation - -
 Freight (returned units) - -
Inventoriable (if EE paid) (3,000.00) (3,000.00)
Advances - -
Cash Remittance 192,000.00 192,000.00

b Sales 195,000.00
COS Original 156,000.00
Inventoriable 2,250.00 158,250.00
GP 36,750.00
Commission -
Advertising -
Delivery and Installation -
Freight (returned units) -
Inventoriable (returned units) -
Consignment Income (Loss) 36,750.00

c Original Cost 52,000.00

Inventoriable 750.00
Ending Inventory 52,750.00

d CONSIGNOR
Inventory on Consignment 208,000.00
Inventory 208,000.00

Inventory on Consignment 3,000.00

Payable to EE 3,000.00

No Entry

Cash 192,000.00
Commission Expense 20,250.00
Payable to EE 3,000.00
Consignment Sales 215,250.00

Cost of Sales 158,250.00

Inventory on Consignment 158,250.00

52,750.00

PROBLEM 2
a Sales 960,000.00
 Divide by: 1,200.00
Unit Sold 800.00

b Sales 960,000.00
COS Original 560,000.00
Inventoriable 28,000.00 588,000.00
GP 372,000.00
Commission 192,000.00
Advertising 25,000.00
Delivery and Installation -
Freight (returned units) -
Inventoriable (returned units) 350.00 217,350.00
Consignment Income (Loss) 154,650.00

c Original Cost 133,000.00

Inventoriable 6,650.00
Ending Inventory 139,650.00

d CONSIGNOR
Inventory on Consignment 700,000.00
Inventory 700,000.00

Inventory on Consignment 35,000.00

Cash 35,000.00

No Entry

Cash 743,000.00
Commission Expense 192,000.00
Advertising 25,000.00
Sales 960,000.00

Other Expense (invcost) 350.00

Inventory on Consignment 350.00

Cost of Sales 588,000.00

Inventory on Consignment 588,000.00

PROBLEM 3
a Sales 975,000.00
 Divide by: 15,000.00
Unit Sold 65.00

d Sales 975,000.00
COS Original 585,000.00
Inventoriable 6,500.00 591,500.00
GP 383,500.00
Commission 146,250.00
Advertising 15,000.00
Delivery and Installation 22,750.00
Freight (returned units) -
Inventoriable (returned units) - 184,000.00
Consignment Income (Loss) 199,500.00

c Sales 975,000.00
Commission 146,250.00
Advertising 15,000.00
Delivery and Installation 22,750.00
Freight (returned units) -
Inventoriable (if EE paid) -
Advances 292,500.00 476,500.00
Cash Remittance 498,500.00

b Original Cost 765,000.00

Inventoriable 8,500.00
Ending Inventory 773,500.00

PROBLEM 4
a Sales 1,680,000.00
COS Original 960,000.00
Inventoriable 48,000.00 1,008,000.00
GP 672,000.00
Commission 252,000.00
Advertising 30,000.00
Delivery and Installation 20,000.00
Freight (returned units) 5,000.00
Inventoriable (returned units) 6,000.00 313,000.00
Consignment Income (Loss) 359,000.00

b Sales 1,680,000.00
Commission 252,000.00
 Advertising 30,000.00
Delivery and Installation 20,000.00
Freight (returned units) 5,000.00
Inventoriable (if EE paid) -
Advances 378,000.00 685,000.00
Cash Remittance 995,000.00

c Original Cost 120,000.00

Inventoriable 6,000.00
Ending Inventory 126,000.00

PROBLEM 5
a Sales 2,400,000.00
COS Original 1,280,000.00
Inventoriable 48,000.00 1,328,000.00
GP 1,072,000.00
Commission 360,000.00
Advertising 50,000.00
Delivery and Installation -
Freight (returned units) 20,000.00
Inventoriable (returned units) 4,500.00 434,500.00
Consignment Income (Loss) 637,500.00

b Sales 2,400,000.00
Commission 360,000.00
Advertising 50,000.00
Delivery and Installation -
Freight (returned units) 20,000.00
Inventoriable (if EE paid) -
Advances - 430,000.00
Cash Remittance 1,970,000.00

c Original Cost 200,000.00

Inventoriable 7,500.00
Ending Inventory 207,500.00

SP 2,000,000.00 PV
DP 500,000.00
1,500,000.00 3 annual payment
 500,000.00 non interest bearing
520,000.00 interest bearing

500,000.00
1,500,000.00

50,000.00
Collection
Sales 100,000.00 50,000.00
Cost 75,000.00 37,500.00 37,500.00
GP 25,000.00 12,500.00

AR 100,000.00
Sales 100,000.00

COS 75,000.00
Inv 75,000.00

Cash 50,000.00
AR 50,000.00

INSTALLMENT SALES

PROBLEM 1
a
SP 2,200,000.00
440,000.00 DP
1,760,000.00 352,000.00
352,000.00 non interest
1/1/2020 Cash 440,000.00
Installment Receivable 1,760,000.00
Installment Sales 1,774,361.60
Discount on IR 425,638.40

Cost of Sales 1,080,000.00

Inventory 1,080,000.00

12/31/2020 Cash 352,000.00

 Installment Receivable 352,000.00

Discount on IR 133,436.16
Interest Revenue 133,436.16

b Sales 1,774,361.60
Interest Revenue 133,436.16
Total Revenue 1,907,797.76
COS 1,080,000.00
Net Income 827,797.76

PROBLEM 2
a 10/1/2020 Cash 400,000.00
Installment Receivable 1,000,000.00
Installment Sales 1,400,000.00

Cost of Sales 910,000.00

Inventory 910,000.00

10/31/2020 Cash 100,462.00

Installment Receivable 70,462.00
Interest Income 30,000.00

11/30/2020 Cash 100,462.00

Installment Receivable 72,575.86
Interest Income 27,886.14

12/31/2020 Cash 100,462.00

Installment Receivable 74,753.14
Interest Income 25,708.86

b Sales 1,400,000.00
Interest Revenue 83,595.00
Total Revenue 1,483,595.00
COS 910,000.00
Net Income 573,595.00

PROBLEM 3
a Unrecovered Cost 516,000.00
NRV 412,800.00
Loss on Repossession 103,200.00
b Repossessed Item 412,800.00

c 3/2/2020 Installment Receivable 960,000.00

Installment Sales 960,000.00

Cost of Sales 576,000.00

Inventory 576,000.00

Cash 130,000.00
Interest Revenue 30,000.00
Installment Receivable 100,000.00

Repossessed Item 412,800.00

Loss on Repossession 103,200.00
Deferred Gross Profit 344,000.00
Installment Receivable 860,000.00

d Sales 960,000.00
COS 576,000.00
GP 384,000.00 unrealized
Deferred Gross Profit 344,000.00
Realized Gross Profit 40,000.00
Loss on Repossesion (103,200.00)
Interest Income 30,000.00
Net Income (Loss) (33,200.00)
 10,000.00 MU rate 25%
500.00
10,500.00
1,250.00

1,312.50

Cash Remittance Ending Inventory

Sales xxx Original Cost
Commission xxx Inventoriable
Advertising xxx Ending Inventory
Delivery and Installation xxx
Freight (returned units) xxx
Inventoriable (if EE paid) xxx
Advances xxx xxx
Cash Remittance xxx

10.00
5.00 sold
2.00 returned OR
3.00 remaining EE

400.00
300.00 165.00 650.00 107,250.00
135.00 800.00 108,000.00
215,250.00
 20,250.00 Commissiom
195,000.00

RP 650.00
Cost 520.00
MU 25%

3,000.00 400.00 7.50

CONSIGNEE
Memo Entry

Receivable from OR 3,000.00

Cash 3,000.00

Cash 215,250.00
Payable to OR 215,250.00

Payable to OR 215,250.00
Receivable from OR 3,000.00
Commission Income 20,250.00
Cash 192,000.00
 35,000.00 1,000.00 35.00

1,000.00
800.00 sold
190.00 on hand
10.00 returned

CONSIGNEE
Memo Entry

No Entry

Cash 960,000.00
Payable to OR 960,000.00

Payable to OR 960,000.00
Cash 25,000.00
Commission Income 192,000.00
Cash 743,000.00
 15,000.00 150.00 100.00

total advances 150.00 4,500.00 675,000.00

150.00
65.00 sold
85.00 on hand

Original 100.00 12,000.00 1,200,000.00

Inventoriable 100.00 600.00 60,000.00
12,600.00

SP 21,000.00

100.00
80.00 sold
10.00 returned
10.00 on hand
 advances 100.00 4,200.00 420,000.00

100.00
80.00 sold
10.00

10.00

120,000.00 246,000.00

60,000.00 sold 48,000.00

on hand 6,000.00
returned 6,000.00
60,000.00

2,000.00
250.00 on hand
1,600.00 sold
150.00 returned

60,000.00 2,000.00 30.00

 interest bearing
rest bearing

unrecovered cost

440,000.00
352,000.00 3.79 1,334,361.60
1,774,361.60 PV

Payment Interest Principal Balance

1/1/2020 - - - 1,774,361.60
1/1/2020 440,000.00 - 440,000.00 1,334,361.60
12/31/2020 352,000.00 133,436.16 218,563.84 1,115,797.76
12/31/2021 352,000.00 111,579.78 240,420.22 875,377.54
12/31/2022 352,000.00 87,537.75 264,462.25 610,915.29
12/31/2023 352,000.00 61,091.53 290,908.47 320,006.82
12/31/2024 352,000.00 32,000.68 319,999.32 7.50
 Payment Interest Principal Balance
10/1/2020 - - - 1,400,000.00
10/1/2020 400,000.00 - 400,000.00 1,000,000.00
10/31/2020 100,462.00 30,000.00 70,462.00 929,538.00
11/30/2020 100,462.00 27,886.14 72,575.86 856,962.14
12/30/2020 100,462.00 25,708.86 74,753.14 782,209.00
1/31/2021 100,462.00 23,466.27 76,995.73 705,213.27
100,462.00 21,156.40 79,305.60 625,907.67
100,462.00 18,777.23 81,684.77 544,222.90
100,462.00 16,326.69 84,135.31 460,087.59
100,462.00 13,802.63 86,659.37 373,428.22
100,462.00 11,202.85 89,259.15 284,169.06
100,462.00 8,525.07 91,936.93 192,232.14
100,462.00 5,766.96 94,695.04 97,537.10
100,462.00 2,926.11 97,535.89 1.21

Collection
Sales 960,000.00 100,000.00
COS 576,000.00 0.60 60,000.00 516,000.00
GP 384,000.00 0.40 40,000.00
344,000.00
ing Inventory
xxx
xxx
ing Inventory xxx