Can a firm record inventory out on consignment as revenue when transferred to the consignee? Explain.

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Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Question Posted: Nov 24, 2015 04:43 AM

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Explain what it means if a company has some of its inventory out on consignment. Who owns the goods? In other words, whose inventory would they be part of?
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Can a firm record inventory out on consignment as revenue when transferred to the consignee? Explain.

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Sales on consignment are transactions where a sell...View the full answer

Intermediate Accounting

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