Cha

pte
r10
Probl
emI
1.Thejourn
alentri
esshownbe
lowwou
ldbema
deont
hec
ons
ign
or’
san
dcon
sig
nee
’sbook
s(a
ssu
met
heu
seof
pe
rpet
uali
nve
ntory)
:
Entri
esonCon si
gnor’
sBooks Entri
esonCons
ign
ee’
sBook
s
Trans
actions (Herbal
if
eS uppl
ier
) (ConradoEn
ter
pri
ses
)
Shi
pmen tofgoodson I
n v
en t
oryon Noe nt
ry
con
signme n
t. Consigment…… 60,
000 (memor a
ndument
ry
Fini
shed Goods only)
I
n v
entor
y*..
.. 60,
000
2.Paymentofe
xpe
nse
s I
nven
toryon Noe
ntr
y
byconsi
gnor
. Cons
ignme
nt….
. 600
Cash…….
. 600
3.Paymentofe
xpe
nse
s I
nvent
oryon
bycons
ign
e e
. Consi
gnment…… 2,
400 Con
sig
norRece
iva
ble 2,
400
Consignee Cash……………. 2,
400
Payable……… 2,
400
Adva
ncesby Cash
……… 3,
360 Advanc
esto
Cons
ignor Advancesfr
om Consi
gnor 3,
360
Con s
ignee
….. 3,
360 Cas
h 3,
360
Cash
S
aleofme
rch
andi
se Noe
ntr
y. Cons
ign
or 48,
000
payabl
e 48,
000
6.Noti
fi
cat
ionofsal
eto
consi
gnorand
paymentofc a
shdue. Commissi
onexpens
e 4,
800 Cons
ignorPaya bl
e.
. 48,
000
Commi s
sion: Adva
n c
esfrom Commi ssi
on
10% xP48, 000= Consi
gnee…… 3,
360 Reve
nu e…….. 4,
800
P4,
800 Cash……. 37,
440 Con s
ignor
Consi
gneePayabl
e 2,
400 Recei
vable….. 2,
400
Con s
ignment Ca s
h……… 37,
440
S a
lesRev
enue.
. 48,
000 Advancesfrom
Consi
g n
e e…… 3,
360
7.Tor ecordcostof
goodss ol
da n
d Cos
tofgoodss
old** 31
,
500
rel
atedc ost
s. I
nven
toryon
**( P60,000+P600+ Cons
ignme
nt 31
,
500
P2,400)x½=
P31,500
*i
fpe r
iodi
cmethodisus
ed,t
hecredits
houldbe”consi
gnme
ntshi
pment
s”acc
ounttr
eat
eda
sre
duc
ti
oni
ntheCos
ts
ofgoodsav
ail
abl
eforsal
etoarr
iv
ea tCostofGoodsSol
dAvai
la
blef
orRegul
arSal
e.
2.Th
ere
mit
tan
cea
mou
nti
ngt
oP37,
440c
anbede
ter
min
edbypr
epa
rin
gth
eAc
cou
ntS
ale
sasf
oll
ows
:
Sol
df ortheAc cou n
tof:
Ji
ngk aJ ui
ce
Sal
e s(60s achetsofh erbalg
oods) P48,
000
Char ges:
Fin i
shi
ngc osts……………………. . P2,
400
Commi ss
ion( P48,000x1 0% )……………….
. 4,
800 7200
Duet oCon s
ignor ……………………………. P40,
800
Le
ss: Adv a
nces………………. 3,
360
Bal
a nc e………………………… P37,
440
Remi t
tan c
eEn cl
os ed……………… 37,
440
Bal
a nc eDu e
…………… P 0
I
temsonHa nd(50s achet
sofherbalg
oods
):P60,
000x50% P30,
000
Probl
emII
1.Theac
coun
tsales
:
Sol
dfortheAcc
ountof:
AACompa ny
Sal
es(8set
s@ P24,
000)……………… P1
92,
000
Charg
es:
Freig
ht-i
n…………… P6,
000
Advert
is
inge
xpense
………… 2,
400
 Deli
veri
esa ndinst
all
ati
one x
pense
s 9,
600
Repair
se xpense–onu n
itss
old.
. 4,
800
Commi ss
ions,25% ofs al
es 48,
000 70,800
DuetoCon s
ignor……………………………. P121
,200
Le
ss:
Adv a
nces………………. 0
Bal
ance………………………… P121
,200
Re
mitt
an c
eEn cl
os e
d……………… 30,000
Bal
anceDu e
…………… P91,200
I
temsonHa nd………… 15set
s
I
temsReturn
e d(defec
ti
ve)….
……. 2set
s
2.Theinvent
or yonc onsi
gnme nta mou ntedtoP189,000c ompu tedas:
Ch ar
geAn a l
ysi
s
Sales I
n v
e n
tory Tota
l
(8sets) (
15s e
ts) (25sets)
Charg esbyc on s
ignor:
Co stofc on si
gnedg oods
(@P1 2,000/ set
) P 96, 000 P1
80,000 P300, 000
Fr eight-ou t(P9,000/ 25s ets=P360pe rset
) 3,600* 5,
400 9,000
Charg esbyc on s
ignee:
Fre i
ght-i n(P6,000/ 25s ets=P240pe rs
et) 2,
400* 3,
600 6,000
Adv erti
sin gexpe ns
e…………. . 2,400 0 2,400
De li
verya ndinstal
lation 9,600 0 9,600
Re pairse xpense…………… 4,800 0 4,800
Co mmi ssions[25% ofs a
les(8setsx
P24,000pe rset] 48,000 0 ___48, 000
Total P166,800 P189,
000 P379,800
* Fr ei
g htons e t
sreturnedi schargeda gai
nstsal
esoft hepe ri
od.
** Nor ma ll
y,t het er
m” freight-out”issynonymoust o” de
li
verye xpense”whi
chisc l
ass
if
ie
dass el
li
ngex pense
s
i
fwea rede alingwi t
hat hirdpa r
ty.But,forconsignmenta ccountingwher
et hetransf
erofme rchandisei
f
fr
om cons ignort oconsignee ,theusageoft heterm” frei
ght-out”doe snotc
ons t
ruedtobeas e
ll
inge xpens
e
butst
il
la ni nve ntori
ablecos t(whichispartoffre
ight-in).
Th
econsig
n mentn etincomea mount
edtoP25,
200c omput
edas
:
Consi
gn men tS al
es(8s etsxP24,000perset) P1
92,
000
Les
s:Costsa nde xpe ns
e s:
Ch ar
g esbyCon signor:
Costofc on si
gne dgoods@P1 2,
000/s
et) P 96,
000
Fre i
gh t
-ou t(P9,000/25set
s=P360pe rse
t) 3,
600* 99,
600
Chargesbyc on s
ignee:
Fr
eight-in( P6,000/ 25s e
ts=P240perset) P 2,
400*
Adverti
si
n ge xpen s
e…………. . 2,
400
Deli
verya n dinstall
ation 9,
600
Repairsex pense…………… 4,
800
Co mmi ss
ion s[25% ofs al
es(8set
sxP24,000perset
] 48,
000 67,
200
NetIn
come P25,
200

Pr
obl
emIII
S
ummi tEl
ect
ron
icsCompany
 
 I
nve
ntoryonConsi
gnment(800@ P570) 456,
000
 
  
  Fi ni
she
dGoodsInv
entory 456,
000
 
 Consi
gnmentExpense(
P368,
000x30% ) 1
10,
400
 
 Acc
ountsRece
iva
ble--Cons
ign
eeSal
es 257,
600
 
    SalesRe
venue—Consi
gnment(
P920x400) 368,
000
 
 Cos
tofCons
ign
edGoodsSol
d(P570x400) 228,
000
 
  
  I n
ven
tor
yonConsi
gnment 228,
000
 
 Cas
h[(
P920x70% )x380] 244,
720
 
  
  Account
sRe
cei
vabl
e--Con
sig
neeS
ale
s 244,
720

Far
leyHar
dwar
e
Noentr
yuponr
ece
iptofc
ons
ign
edme
rch
andi
se.
 Cas
h(P920x400) 368,
000
 
  
  Con si
gnorPa
yable 257,
600
 
  
  Commi ssi
onRev
enue 1
10,
400
 
 Con
sig
norPa
yabl
e 244,
720
 
  
  Ca sh 244,
720

49.
Sea
hawk
s,I
nc.
hadt
hef
oll
owi
ngc
ons
ign
men
ttr
ans
act
ion
sdu
rin
gDe
cembe
r:

I
nven
toryshi
ppedoncon
sig
nmentt
oAsh
eCompa
ny P1
8,000
Fr
eightpa
idbyS e
aha
wks 900
I
nven
toryrec
eiv
edoncons
ignme
ntf
romFen
nCompa
ny 1
2,000
Fr
eightpa
idbyFenn 500

Mul
ti
pleChoi
cePr
obl
em
1
.c–P1,200
Commis
si
on=25% xS al
espr
ice
P400=25% xS al
espr
ice
Sal
espr
ice=P400÷25% =P1 ,
600
Nu
mbe
rofu
nit
ssol
d= S
e l
l
ingpr
ice = __P1
,600__ =8t
ape
s
Pri
cepe
rtape P200perta
pe
Sal
es………………………………………………………………..P1
,
600
Les
sCommis
si
onofc
ons
ign
ee………………………………..
. 400
Amountr
emi
tte
dbyBet
aViewSt
ore
………………………..
.P1
,
200
2.
a–P370
Char
gesRe
lat
edto
Tota
l Con
sign
me n
t In
ven
toryon
Charg
es Sales Cons
ign
me n
t
(25) (8) (1
5)
Consi
gnor’
scha
rges
:
Cost P2,500 P800 P1
,
500
Frei
g ht
-out 75 30 45
Consi
gnee’
scha
rge- Commi
ss
ion __400__ __400__ _______
Tot
al P2,975 1,
230 _P1
,545_
Sal
espric
e _1,
600_
Consi
gnmentprof
it _P370_
3.
a–P1
,
545(
ref
ert
oNo.
2forc
ompu
tat
ion
)
4.
b
Sa
les(
P2,250/15% ) P15,
000
Di
vide
dby: Se
ll
ingpri
cepe
run
it P1 ,
000
Numberofuni
tssol
d 1
5u ni
ts
5.c
Sa
les P1
5,000
Le
ssCh ar
ges:
Commi s
si
on P2,
250
Adver
tis
ing 1,
500
Deli
ver
ye xpens
e ___750 __4,500
DuetoCon s
ignor P1
0,500
Le
ss:
Adv an
ces
Va
lueofn ot
e–s i
ghtdraf
t:(
100bedsxP600perbe
d)x60% P36,
000
Mul
ti
pli
edby: Pr
oporti
onalnumbe
rofbedssol
d 1
5/1
00 __5,
400
 Amou
ntr
emi
tt
ed P5,
1
00
6.d–P1,
500
Sal
es P1
5,000
Les
sCh a
rges:
Consi
gnor’
scha r
ge:
Costofbeds(P600pe
rbe
dx1
5be
ds) 9,
000
Consi
gnee’
scha r
ges
:
Commi s
si
on P2,
250
Adver
ti
sing 1,
500
Del
iver
ye xpense ___750 __4,
500
Consi
gnmentnetincome P1
,
500
7.a–noit
emswe r
esoldi
nNov
embe
r;
Sa
les(unk
nown) P x
Le
ssCh a
rges
:
Commiss
ion 1
5% x
Re
mi t
tanc
e P27,
200
x–15% x=P27,
200
85% x=P27,
200
x=P32,
000
8.
c–P16,
800
Sa
les(unk
nown) x
Le
ssCh a
rges:
Adver
ti
sin
g P500
Deli
ver
ya ndi
nst
all
ati
onc
har
ges 100
Commissi
on(u
nknown) 20% x _______
Re
mi t
tanc
e P12,
840
x–(P500+P100+20% x
)=P1
2,
840
x–20% x=P12,
840+P600
80% x=P13,
440
x=P16,
800
9.
b-P6,
080
Cost(P1
50peruni
tx40u ni
ts
) P6,
000
Fre
ightonshi
pment(
P200x40/100) 80
Costofinv
ent
oryoncon
sig
nment P6,
080
1
0.c-6
Sa
les(unk
nown) x
Le
ssCh a
rges:
Commissi
on(unknown) 20% x
Adver
ti
sin
g P1,
000
Deli
ver
ya ndin
stal
lat
ion 600
Cart
ageonc ons
ignedgoods 500
Re
mi t
tanc
e P21
,
900
x–(20% x+P1
,
000+P600+P500)=P21
,
900
x–20% x=P21,
900+P2,
1
00
80% x=P24,000
x=P30,000
Nu
mbe
rofu
nit
ssol
d=_P30,000_ =6
P5,000pers
et
1
1.b–P2,
300
Char
gesRe
lat
edto
Tota
l Con
sign
me n
t In
ven
toryon
Charg
es Sales Cons
ign
me n
t
(
10) (6) (3)
Con
sig
nor’
sch
arg
es:
Cost P30,
000 P1
8,000 P9,
000
 Fr e
ight
-out 2,
500 1
,
750 750
Con si
gnee’
scharges
:
Commi ssi
on(20% xP30,000) 6,000 6,000
Adv e
rti
si
ng 1,
000 1,
000
De l
ive
rya n
di ns
tal
l
ati
on 600 600
Ca rt
age __500__ __350__ __150__
Total P40,600 27,700 _P9,
900_
Salesprice _30,000_
ProfitonCon s
ignment __P2,300__
1
2.d–Non
eoft
hea
bov
e(P9,
900)–r
efe
rtoNo.
11f
orc
ompu
tat
ion
.
1
3.Noanswe
ra v
ail
abl
e-P17,
625
S
ale
s–( Sa
lesx20% )–P600–P390–P210=P1
2,
900
.8S
ales=P1
4,1
00
Sal
es=P1
7,625.
1
4.a (
P270x50)+[
(P600÷80)x50]=P1
3,875.
AASal
es-Nos .1
5to1 7:
15.a
Grosscol
le
cti
on( P15,
000x70% x80% ) P 8,
400
Les
s:Cashdis
cou ntta
k e
nbycus
tome
r(P8,
400x2% ) __168
Netcol
lec
ti
on P8,232
Les
sCh ar
ges:
Expense
s P 800
Commi s
sion(P8,400x1
5% ) _1,
260 __2,
060
DuetoCon s
ignor P6,1
72
Les
s:Advanc
es _6,
000
Amou n
tremitt
e d P 172
1
6.b
Char
gesRe
lat
edt o
Tot
al Con
sig
nme n
t In
ventoryon
Char
ges Sales Consi
g n
me n
t
(
100% ) (
70% ) (30% )
Cons i
g n
or’scharges:
Cos t P1
0,000 P7,
000 P3,
000
Fr ei
ght 1
20 84 36
Cons i
g n
ee’scharges:
Ex pens
e s 800 800
Commi ss
ion(15% xP10,500) 1
,575 1,
575
Ca shdiscount(P1
0,500x80% x2% ) 1
68 168
Total P1
2,
663 P9,
627 _P9,
900_
Salespr i
ce(70% xP1 5,
000) _1
0,500_
ProfitonCon s
ignment P 873
1
7.b–r
efe
rtoNo.
16f
orc
ompu
tat
ion
RRProduct
sCompa ny–Nos .1
6t o18
16.c
Coll
ect
ionmadepe r
tai
nin
gt o:
Maysal
e
Downpa yment(
3xP50) P1
50
Monthl
ypa ymentthe
r e
aft
er(
3xP1
0) 30 P1
80
Jun
esal
e
Downpa yment(
1xP50) ___50
Total P230
Less
:Commiss
ion(P230x20% ) ___46
Amountremi
tted P184
1
7.d–P1
40
Char
gesRe
lat
edto
Tot
al Con
sig
nme n
t In
ven
toryon
Char
ges Sales Cons
ign
me n
t
 (
5) (
4) (
1
Cons i
gnor’scharges
:
Cos t P775 P 620 P1
55
Fr e
ight 50 40 1
0
Cons i
gnee’
sc harges
:
Commi ss
ion 200 200 ____
Total P1
,
025 P 860 P1
65
Salesprice(4u ni
tsxP250/
uni
t) _1,
000
ProfitonCon s
ign
me nt P 140
1
8.b–r
efe
rtoNo.
17f
orc
ompu
tat
ion

1
9.b
Col
lect
ionma de:
Ca s
hs a
le(P1,
500x2) P3,
000
Cr e
ditsal
e(P1,800x25% ) ___450
Total P3,
450
Les
s:Charges
Freight P320
Commi ss
ion[(P3,000+P1
,
800)x1
5% ] __720 __1
,040
Amountremitte
d P2,
410
20.a
Char
gesRe
lat
edto
Tot
al Con
sign
me n
t In
ven
toryon
Char
ges Sales Cons
ign
me n
t
(
5) (3) (2)
Cons i
gnor’
scharges
:
Cos t P4,
000 P2,
400 P1
,
600
Fr e
ight 200 120 80
Cons i
gnee’
scharges
:
Fr e
ight 320 192 1
28
Commi ssi
on 720 720 ______
Total P5,
240 P3,
432 P1
,808
Salesprice 4,800
ProfitonCon s
ign
me nt P1,
368
21
.b–P1
,
808–r
efe
rtoNo.
20f
orc
ompu
tat
ion
22.
d–244, 600
Sal
esoncredit(1
4,000perunitx12u
nit
s)+(13,
000x1
0) P298,
000
Les
s:Sa
lesall
owanc egr
ant
ed P2,000
Badde bts 7,
000
Commi ssi
on[ 2% x(
P298,000–P2,000)] _44,
400 __53,400
Amountsti
l
ldu efromBB,Inc P244,600
23.
d–P67,
280
Char
gesRe
lat
edto
Tota
l Con
sig
nme n
t In
ven
toryon
Charg
es Sales Cons
ign
me n
t
(30) (
22) (8)
Consi
gnor’
sc harg
e s
:
Cost P240,000 P1
76,
000 P64,000
Frei
g ht
-ou t 1
,800 1,
320 480
Consi
gnee’
sc har
ge s
:
Salesal
lowa n
ce 2,
000 2,
000
Badde bt s 7,
000 7,
000
Commi ssion
[1
5% x( P298,000–P2,000)] 44,
400 44,
400
Tot
al P295,
200 P230,
720 _P64,
480_
Sal
espric
e[ P14,
000pe runi
tx12uni
ts
)
+(P13,
000pe ru ni
tx1
0u ni
ts
)] 298,
000
Consi
gnmen tprofit P 67,
280
24.
d–r
efe
rtoNo.
23f
orc
ompu
tat
ion
25.
b–395
Sal
es(
unkn
own) x
L
essCha
rges
:
Commis
si
on(
unk
nown
)
__x ()
__ P1
0
P1
00
De
li
ver
yex
pen
se __P45__ ________
Re
mitt
anc
e P35,
505

x- [
(_x__ )0+P45]
P1 =P35,
505
1
00
x–_P1 0x_=P35, 550
P100
P1
00x–P1 0x=P3,555,000
P90x=P3, 555,000
x=P39,500
Nu
mbe
rofba
ll
pen
ssol
d= _P39,
500_ = P395
P1
00peru
nit
26.
b
Consi
gnment
Reg
u l
arSal
es Sale
s Tot
al
Sal
e s P120,
000 P30,000 P1
50,
000
Costofsales 84,000 1
9,
500* 1
03,
500
Grossprofit P36,000 P1
0,500 P46,
500
Ope r
atingexpenses
:
Commi ss
ion(P30,000x5% ) P1
,
500 P1
,
500
Frei
ght-in(P260xP19,
500*/P26,000) 1
,950 1
,950
Others
Regul
ar(P15,
150xP19,
500/P26,000) 1
2,
120
Consi
gnme nt
(
P15,1
50xP30, 000/P1
50,
000) _______ 3,
030 3,
030
Total P12,
120 P4,
725 _P16,
845_
Netprofi
t P23,
880 P5,
775 P29,
655
*P26,
000–P6,
500=P1
9,
500

27.
d–P5,
775(
ref
ert
oNo.
26f
orc
ompu
tat
ion
)
28.a–(
P18,
000+P900)=P1
8,900
Theor
ies
1. d
2. d
3. a
4. c