Final adjusting entries have not yet been made.

Using the terms and asset accounts, such as "Merchandise inventory" and "Consignment inventory", can anybody help me determine how to interpret the above word problem in order to make a correct adjusting journal entry below in the general journal? What should be the proper explanation to describe what is being highlighted in the word problem below?

1. At 12/31/17, Peyton has $200 worth of merchandise on consignment at Brunos House of Bacon.

**Below is the Unadjusted and Adjusted Trial Balance, where both the accounts called "Merchandise inventory" and "Consignment inventory are found.**

Debito Credito General Journala Date Account-Title-&-Explanation Post-Ref. Dec 31, 2017 0 do 8 8 8 8 8 8 $0 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Unadjusted trial balance Adjusting entries Adjusted trial balance Dr Cr ref Dr Cr ref Dr Cr Cash 67,520.04 67,520.04 Accounts Receivable 68,519.91 68,519.91 Other Receivable - Insurance Baking Supplies 15,506.70 15,506.70 Merchandise Inventory 1,238.07 1,238.07 Consignment Inventory Prepaid Rent 2,114.55 2,114.55 Prepaid Insurance 2,114.55 2,114.55 Misc. Supplies 170.49 170.49 Baking Equipment 14,000.00 14,000.00 Accumulated Depreciation 1,606.44 1,606.44 Customer Deposit Accounts Payable 20,262.11 20,262.11 Wages Payable 3,383.28 3,383.28 Interest Payable 211.46 211.46 Notes Payable 5,000.00 5,000.00 Common Stock 20,000.00 20,000.00 Beginning Retained earnings 50,144.84 50,144.84 Dividends 105,000.00 105,000.00 Bakery Sales 327,322.55 327,322.55 Merchandise Sales 1,205.64 1,205.64 105,834.29 Cost of Goods Sold - Baked 105,834.29 Cost of Goods Sold - Merchandise 859.77 859.77 Rent Expense 24,549.19 24,549.19 Wages Expense 10,670.72 10,670.72 Misc. Supplies Expense 3,000.46 3,000.46 Business License Expense 2,045.77 2,045.77 Misc. Expense 1,363.84 1,363.84 Depreciation Expense 677.86 677.86 Insurance Expense 1,091.08 1,091.08 Advertising Expense 1,549.74 1,549.74 Interest Expense 818.31 818.31 Telephone Expense 490.98 490.98 Gain/Loss on disposal of equipment 429,136.32 429,136.32 429,136.32 429,136.32