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Question - EEE Company consigned 2,000 units of digital camera, costing P800 each to SM Megamall to be sold at P1,500 per unit. The agreement calls for 15% commission on units sold and any expenses paid by the consignee is reimbursable by the consignor. EEE paid P40,000 freight and insurance of P20,000 for the shipment. At the end of the month, SM remitted the amount due to the consignor after deducting commission of P360,000 and advertising costs of P50,000. Record shows that 250 units were left to the consignee and some units were returned to the consignor. SM paid the cost of shipment of the returned units amounting to P20,000.
Required -
a. Determine the Net Income (Loss).
b. Determine the Cash Remittance.
c. Determine the Ending Inventory.
d. Determine the Entries to record the transactions in both books.
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