5. Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000 for the freight. The consignee is allowed a commission of 5% on sales. Argy Trading submitted the following report at the end of the period: Sales (6 units) Less: Advances to Aircon, Inc. Selling expenses Installation and delivery 72,000 10,000 800 1,200 7,200 Commission 19,200 52,800 Net remittance The selling expenses and the installation and delivery costs are chargeable to Aircon. Aircon consistently marks-up its inventories at a 12.50% gross profit rate based on sales price. This does not reflect any freight. How much was Aircon's profit or loss on the consignment? a. 52,800 profit c. 2,200 profit Page I 2 b. 7,800 loss d. 1,400 loss

Carla Vista Corporation shipped $20,100 of merchandise on consignment to Wildhorse Company. Carla Vista paid freight costs of $2,000. Wildhorse Company paid $510 for local advertising, which is reimbursable from Carla Vista. By year-end, 58% of the merchandise had been sold for $20,100. Wildhorse notified Carla Vista, retained a 10% commission, and remitted the cash due to Carla Vista. Prepare Carla Vista's journal entry when the cash is received. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs and Markson paid $360 for 5,000 copies and $280 for 3,000 copies,

Dinesh Bhai