Olson Metrics Ltd$.$ has been the dominant firm in its field. The company's most popular product has been the Model T$,$ which carries a

retail price of $$250.$ The Model T costs $$150$ per unit to produce.

Recently, the company introduced a new version, Model A$,$ priced at $$280.$ When the Model A was released, Olson reduced the retail

price of the remaining $1,000$ units of Model T to $$200.$ Despite the price reduction, the demand for the Model T dropped sharply.

Therefore, Olson decided to sell $600$ of the remaining units on consignment through FloorMart Inc. as a private label product at $$120$

per unit. FloorMart will collect a commission of $20\%$ per unit. Olsen will lower the price of the remaining $400$ units in inventory to $$180.$

Required:

Prepare any journal entry$($ies$)$ that are necessary to record the effects of the above information. explain each answer