Question

On August 5, 2018, Crane Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $230 each. The cost of shipping the dining sets amounted to $2400 and was paid for by Crane Furniture. On December 30, 2018, the consignee reported the sale of 20 dining sets at $730 each. The consignee remitted payment for the amount due after deducting a 7% commission, advertising expense of $480, and installation and setup costs of $660.

The amount cash received by Crane furniture is:

Answer 1

$12,438

Step-by-step explanation:

The amount cash received by Famous furniture = (20×$730) × (100%-7%) – $480 – $660

=$14,600×(1-0.07)-$1,140

=($14,600×0.93)-$1,140

=$13,578-$1,140

= $12,438

Therefore the amount of cash received by Crane furniture is: $12,438