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  3. on february 28, 2017, quaker company established a

On February 28, 2017, Quaker Company established an agency in Caramoan, sending its merchandise samples...

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Accounting

On February 28, 2017, Quaker Company established an agency in Caramoan, sending its merchandise samples costing P930,000 and a working fund of P1M to be maintained on the imprest basis. The agency transmitted to the home office sales orders that cost at P8,250,000. However, the home office was able to fill-up only 80% of the orders. Total ash of P4,050,000 was collected from customers. A home office disbursement chargeable to the sales agency includes the acquisition of furniture and fixtures for Caramoan, P1,550,000 to be depreciated at 18% per annum. The agency paid expenses of P420,000 and received replenishment thereof from the home office. The agency samples are good for fifteen months. It was estimated that the gross profit on goods shipped to bill agency sales orders averages 25%. How much is the net income of the sales agency for 2017?

a.617,500

b.377,500

c.67,500

d.927,500

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