Question

On August 5, 2018, Famous Furniture shipped 40 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $360 each. The cost of shipping the dining sets amounted to $3,600 and was paid for by Famous Furniture. On December 30, 2018, the consignee reported the sale of 30 dining sets at $850 each. The consignee remitted payment for the amount due after deducting a 6% commission, advertising expense of $600, and installation and setup costs of $780. The amount cash received by Famous furniture is

#5. Cash Received = $

Answer 1

The amount of cash received by Famous furniture
Total revenue from the consignment sale [30 x $850]	25,500
Less: Commission at 6.00% [$25,500 x 6.00%]	(1,530)
Less: Advertising expense	(600)
Less: Installation and setup costs	(780)
The amount of cash received by Famous furniture	22,590