Question

On August 15, 2018 Red Fish Blue Fish consigned 500 electronic play systems, costing $100 each, to Toys R You Company. The cost of shipping the play systems amounted to $1,250 and was paid by RedFish Blue Fish. On December 31, 2018 an account sales summary was received from the consignee,reporting that 420 play systems had been sold for $160 each. Remittance was made by the consignee for the amount due, after deducting a 20% commission.

Required

Calculate the following at December 31, 2018

.

1.The inventory value of the units unsold in the hands of the consignee.

2.The profit for the consignor for the units sold.

3.The amount of cash that will beremitted by the consignee.

Answer 1