Use the following information for 5-6

Nelba ships merchandise costing $36,000 to Best Value on a consignment basis. Nelba pays $3,750 of freight costs and Best Value pays $2,250 for local advertising costs that is reimbursable by Nelba. By the end of the period, Best Value has sold 2/3rd of the merchandise for $40,000 cash. Best Value notifies Nelba of the sales, retains a 10% commission and remits the cash due to Nelba.

5. The credit to Inventory recorded by Nelba when they receive notification and remittance from Best value is

a. $26,500 b. $24,000 c. $26,667 d. $40,000

6. The amount remitted by Best Value is a. $40,000 b. $33,750 c. $36,000 d. $37,750