An auto tire retailer purchased 10,000 tires from a manufacture to get a special price of $60 each. The retailer has a small showroom and can only accept 2,000 tires this month. The retailer takes delivery of 2,000 tires. The retailer requests that the manufacturer use a bill-and-hold arrangement for the remaining units and gives the manufacturer a check for $150,000. The manufacturer has only 2,000 tires available to sell and deliver today but anticipates that it can meet the retailer’s future delivery needs. How much revenue can this manufacturer recognize today?

• $0
• $120,000
• $150,000
• $600,000

A retail jeweler sells 100% of its merchandise on consignment. A lumberyard purchases 100% of its goods from wholesale for resale to customers. How does the balance sheet of the lumberyard differ from the balance sheet of the jeweler?

• The lumberyard has receivables, and the jeweler does not.
• The jeweler does not have a cost of goods sold (COGS) account, and the lumberyard does.
• The lumberyard has merchandise inventory, and the jeweler does not.
• The jeweler has receivables, and the lumberyard does not