(Solved): JJ&J sells its items online for individuals on a consignment basis. JJ&J receives a 25 perc ...

1. JJ&J sells its items online for individuals on a consignment basis. JJ&J receives a 25 percent commission for any items sold. JJ&J collects the full amount from the buyer and pays the net amount after commission to the owner. Unsold items are returned to the owner. During 2020, JJ&J had the following information:

                Total sales price of items sold during 2020 on consignment was R2,000,000.

                Total commissions retained by Apex during 2020 for these items was R500,000.

      How much revenue should Apex report on its 2020 income statement?

1. R1 500 000
2. R2 000 000
3. R500 000
4. R2 500 000