1. On June 1, DD Co. shipped 25 DVD to BB View Store on consignment.

The DVD is to
be sold at an advertised price of P200 per item. The cost of each DVD to the consignor
is P100. The consignor paid P75 to ship the merchandise. Commission is to be 25% of
sales price. During the month, 2 DVD were returned. On June 30, BB View Store
remitted the amount due to consignor after deducting commission of P400.

● The cost of inventory on consignment amounted to is 1545

● The amount remitted by BB View Store is 1200
● The consignment profit is 370

2. On May 15, 2020, AA Co. received a shipment of merchandise with a selling price of
P15,000 from PC Co. The consigned goods cost PC Co. P10,000 and freight charges of
P120 had been paid to ship the goods to AA Co.

The consignment arrangement provided for a sale of merchandise on credit with terms
of 2/10, n/30. The 15% commission is to be based on accounts receivable collected by
the consignee. Cash discounts taken by the customers, expenses applicable to goods
on consignment and any cash advanced to the company are deductible from the
remittance by the consignee.

AA Co. advanced P6,000 to PC Company upon receipt of the shipment. An expense of

P800 was paid by AA. By June 20x4, 70% of the shipment had been sold, and 80% of
the resulting accounts receivable had been collected, all within the discount period.
Remittance of the amount due was made on June 30, 2020.

● The cost of unsold goods in the hands of AA is 3036

● The profit on consignment is 873
● The cash remitted by AA Co. is 172

3. On November 30, Northup Co. consigned 90 freezers to Watsons Co. for sale at P1,600
each and paid P1,200 for transportation costs. A report of sales was received on
December 30 from Watsons Co. reporting the sale of 20 freezers, together with a
remittance of P27,200 balance due. The remittance was net of the agreed 15%
commission.

● The consignment sales revenue recognized by Northup Co. in December is

32000
● The consignment sales revenue recognized by Northup Co. in November is
0