Question

On August 5, 2021, Crane Furniture shipped 50 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $340 each. The cost of shipping the dining sets amounted to $3500 and was paid for by Crane Furniture. On December 30, 2021, the consignee reported the sale of 40 dining sets at $840 each. The consignee remitted payment for the amount due after deducting a 5% commission, advertising expense of $590, and installation and setup costs of $770. The amount cash received by Crane furniture is

Answer 1

Answer:

$30,560

Step-by-step explanation:

The amount of cash received is the revenue from sales of the 40 sets at $850 each (deducting 5% commission), minus the advertising and installation and setup costs. Therefore, the amount of cash received is:

$C = 40*(\ 840)*(1-0.05)-\ 590-\ 770\\C=\ 30,560$

The amount cash received by Crane furniture is $30,560.

Answer 2

Answer:

$30,560

Step-by-step explanation:

The Consignee Sold a total of 40 dinning sets at $840 each.

Total Sales Income = 40 X $840 =$33600

Expenses

Advertising expense = $590, Installation and setup costs = $770

Commission= 5% of Total Sales=0.05 X 33600 = $1680

Total Deduction= 590+770+1680=$3040

Cash Received by Crane's furniture=Total Sales Income-Total Deduction

=$33600-3040

=$30,560