Consignment Sales

2. Nuzelt Electric Company consigned 30 Lenovo computer units costing P80,000 each to Hoya Appliance Corp. on Sept 5 2019. The units were to be sold on either cash or credit basis at a commission of 15% of net sales. The consignor paid freight of P18,000 on the shipment. On Sept 11, the consignee received the items. Sales were made as follows:

Sept 15, s0ld 10 units for cash at P130,000 each

Sept 28, sold 12 units for P140,000 each on account.

A sales allowance was given to charge customer for a defective unit on Sept 30. On Oct 10, a receivable balance of P70,000 was determined to be uncollectible. On Oct 15 the consignee made remittance to Nuzelt.

a. How much is the profit on consignment?

b. Cost of Inventory end?

c. Total amount to be remitted to consignor?

d. How much is the consignment sales revenue?

PLEASE EXPLAIN WITH SOLUTION AND JOURNAL ENTRY