- Goods on consignment are:

Multiple Choice

• Goods sent by the owner to the consignee who sells the goods for the owner.

• Reported in the consignee's books as inventory.

• Goods shipped to the consignor who sells the goods for the owner.

• Not reported in the consignor's inventory since they do not have possession of the inventory.

• Always paid for by the consignee when they take possession.

- The credit terms 2/10, n/30 are interpreted as:

Multiple Choice

• 2% cash discount if the amount is paid within 10 days, or the full balance due in 30 days.

• 10% cash discount if the amount is paid within 2 days, or the full balance due in 30 days.

• 30% discount if paid within 2 days.

• 30% discount if paid within 10 days.

• 2% discount if paid within 30 days.

- Sandoval needs to determine its year-end inventory. The warehouse contains 20,000 units, of which 3,000 were damaged by flood and are not sellable. Another 2,000 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 4,000 units at a consignee's location. How many units should Sandoval include in its year-end inventory?

Multiple Choice

• 29,000

• 21,000

• 23,000

• 19,000

• 26,000