course hero 16 - A $15,375 B $16,125 C $16,388 D $17,625 Hi...

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Business, Accounting/Business Analysis/Financial Reporting - Year 3 Sales Cost - TV Inc On May 1, 2007, TV Inc. consigned 80 TVs to Al's TV. The TVs cost $270. Freight on the shipment paid by Al's TV was $600. On July 10, TV Inc. received an account sales and $12,900 from Al's TV. Thirty TVs had been sold and the following expenses were deducted: Freight $600 Commission (20% of sales price) ? Advertising 390 Delivery 210 The total sales price of the TVs sold by AL's TV was
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Unformatted text preview: A) $15,375. B) $16,125. C) $16,388. D) $17,625. Hi, Please see the response to your posting as below: Let the total sales price be X Commission on sales =20% *X= 0.2X Amount Received by TV Inc. on account sales =$12900 Therefore, 12900 = X- (Freight +Commission (20% of sales price) +Advertising +Delivery) 12900 = X -(600+0.2X+390+210) 12900 =0.8X -1200 0.8X = 14100 X =14100/0.8 =17625 Answer is D Hope this helps you. Thank you,...
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