On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. How much net income did HBO realize in August on the consignment? A. 37,500 income C. 33,500 loss B. 32,500 income D. 32,500 loss What is the total cost of inventory of the unsold handbags? A. 60,000 C. 71,000 B. 66,000 D. 75,000

On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. How much net income did HBO realize in August on the consignment? A. 37,500 income C. 33,500 loss B. 32,500 income D. 32,500 loss What is the total cost of inventory of the unsold handbags? A. 60,000 C. 71,000 B. 66,000 D. 75,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
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On August, 2019, HBO consigned to GEO 10 laptops costing P15,000 each, paying freight charge of P15,000. At the end of the month, GEO reported sales of 6 handbags at P30,000 each and incurred expenses of P12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. How much net income did HBO realize in August on the consignment? A. 37,500 income B. 32,500 income C. 33,500 loss D. 32,500 loss
PROBLEM: On August, 2019, HBO consigned to GEO 10 laptops costing $15,000 each, paying freight charge of $15,000. At the end of the month, GEO reported sales of 6 handbags at $30,000 each and incurred expenses of $12,500 and remitted the net proceeds due to HBO after deducting a 20% commission on the sales price. REQUIREMENT: How much net income did HBO realize in August on the consignment? A. 37,500 income. B. 32,500 income C. 33,500 loss D. 32,500 loss What is the total cost of inventory of the unsold handbags A. 60,000 B. 66,000 C. 71,000 D. 75,000 THANK YOU SO MUCH IN ADVANCE FOR THE HELP :)
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