Question

On August 5, 2021, Blossom Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $450 each. The cost of shipping the dining sets amounted to $4600 and was paid for by Blossom Furniture. On December 30, 2021, the consignee reported the sale of 20 dining sets at $950 each. The consignee remitted payment for the amount due after deducting a 7% commission, advertising expense of $700, and installation and setup costs of $880. The amount cash received by Blossom furniture is_________

Answer 1

$16,280

Step-by-step explanation:

The computation of Cash received is shown below:-

Sale of Dining Set - 20 Nos × $950 $19,000

Less: Deduction by Consignee

Commission - 6% $1,140

($19,000 × 6%)

Less: Advertisement expenses $700

Less: Installation and setup costs $880

Cash received $16,280

Therefore for computing the cash received we simply deduct the all expenses from Sale of Dining set