Question
ACCOUNTING FOR SPECIAL TRANSACTIONS: CONSIGNMENT SALES Yahama Co. consigns bass guitars costing P500,000 to a consignee. Yahama incurs P20,000 freight in transporting the goods to
ACCOUNTING FOR SPECIAL TRANSACTIONS: CONSIGNMENT SALES
Yahama Co. consigns bass guitars costing P500,000 to a consignee. Yahama incurs P20,000 freight in transporting the goods to the consignee's place and P5,000 repair costs for minor damages during shipment. To induce the consignee in signing the consignment contract, Yahama pays the consignee an advanced commission of P100,000 to be deducted from the consignee's actual commission on future sales. How much is the cost of the consigned goods in Yahama's and the consignee's books?
| Yahama | Consignee | |
| A. | 520,000 | 0 |
| B. | 525,000 | 0 |
| C. | 520,000 | 100,000 |
| D. | 625,000 | 0 |
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
