Use the following statements on answering the two questions given below.

On December 1, 2020, Shamrock Inc delivered 10 boxes of Otap bread and 10 packs of sample bred for tasting purposes, to 24/7 retail store on a consignment arrangement The retail store does not take title to the products and has no obligation to pay Shamrock lnc. until they are sold to final costumers. Any unsold products, excluding those that are lost or damages, can be returned to Shamrock Inc. and the latter has diseretion to call products back or transfer products to another customer.

Shamrock manufacturers the product at a cost of P5,000 per box of Otap bread and P100 per pack of sample bread. There is reight collect of P2,000 for the delivery of 10 boxes of Otap bread to 24/7 but not for the sample bread. The selling price of the Otap productis P8 000 per box for cash sales and P10,000 per box for credit sales with term of 2/10 n/30. The retail store is entitled to a 5% commission on cash sales and 10% Commission on net credit sales already collected The retail store has the right to be reimbursed for the freight it incurred for its delivery to final customers. Shamrock Inc. provides bad debt expense at an estimate of 8% based on ending receivables.

For the month ended December 31, 2020 24/7 retail store was able to sell to fml consumers 3 boxes of Otap bread on cash basis and 5 boxes of otap bread on account. There is freight prepaid of P3,000 for the delivery of boxes of Otap bread to final consumers. Also, five packs of sample bread were consumed by final costumers during the tasting period.

The customers on account paid to 24/7 three out of five boxes sold on credit within the discount period but the remainder continued to be unpaid as of December 31,2020 On. December 31, 2020, 24/7 Retail store made its net remittance to Shamrock Inc.

3. Under PFRS15, what is Shamrock's net income for 2020 in connection with the consignment arrangement?

a. 20,520

b. 21,240

c. 22560

d. 23,420

4. Under PFRS15, what is 24/7's net remittance to Shamrock on December 31, 2020

a. 41,140

b. 42, 240

c. 44,260

d. 45,320