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  3. on january 1, 2016, the samwise inc. established a

On January 1, 2016, the Samwise Inc. established a sales agency in Pasay City. The...

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Accounting

On January 1, 2016, the Samwise Inc. established a sales agency in Pasay City. The following information is made available to you: The main office sent samples of its merchandise amounting to P16,800 and a working fund amounting to P120,000 was established. The samples sent were intended to last until June 30, 2016. During the first 3 months of operations, the agency transmitted to the home office sale of goods totaling P950,000, but the home office was not able to fill-up 25% of the said transmitted sales orders. Collections from customers amounted to P147,882, net of 2% sales discount. Payments made by the agency during the first 3 months of operations were as follows: annual rent of P128,000, advertising expense worth P10,500 and utilities amounting to P6,200. The agency also purchased an equipment worth P20,000. The equipment has a useful life of 5 years. The gross profit rate for agency orders is 20% of sales.

What is the net income of the agency for the quarter ended March 31, 2016? A. P81,382 B. P81,442 C. P117,007 D. P133,807

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