On May 15, 20x4, AA Sales Company received a shipment of merchandise with a selling price of P15,000 from PC Company. The consigned goods cost PC Company P10,000 and freight charges of P120 had been paid to ship the goods to AA Sales Company. 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 the account receivable collected by the consignee. Cash discounts taken by customers, expenses applicable to goods on consignment and any cash advanced to the consignor are deductible from the remittance by the consignee. AA Sales Company 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, 20x4.

14. What is the amount of cash remitted by AA Sales Company?

A. 172

B. 972

C. 800 D. 2,340

15. How much is the profit on consignment?

A. 750

B. 873

C. 1,188

D. 1,428

16. What is the total cost of unsold units in the hands of AA? 

A. 3,186 

B. 1,500 

C. 3,036 

D. None of the above

Answer rating: 100% (QA)

14 Total Sales70 of the shipment07xP15000P10500 Amount Receivable Collected80 of the total sales08xP... View the full answer