Recording Revenue and Receivables Under a Consignment Arrangement On March 15, 2020, Drexel Corp. provides goods to a retailer through consignment where Drexel Corp. customer is documented when the goods are scanned at the cash register of the retailer. Drexel Corp. product can be returned to Drexel Corp. at anytime. Drexel Corp. has the right through the contract to r sales to the final customer. After the sale of the products to the final customer, the retailer cannot retur and the retailer sold 2,000 units. The product cost Drexel Corp. $80 per unit and the product was sold fo on the sale of product less a 10% commission on April 7, 2020. a. At what point should Drexel Corp. recognize revenue? Recognize revenue when the product is sold to the end customer Cr. b. Record Drexel's entries on March 15, 2020, March 31, 2020, and April 7, 2020. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as th Date Account Name Dr. Mar 15, 2020 Accounts Receivable 276,000 x Due from Consignee 0 276,000 x Mar 31, 2020 Due from Consignee 0 x 0 Sales Revenue 230,000 x Accounts Receivable 230,000 To record the sale of product. Cost of Goods Sold 160,000 Inventory 0 160,000 To record the cost of sale of product. April 7, 2020 Sales Commission Expense 23,000 X Accounts Receivable X X X 0 2300 x Recording Revenue and Receivables Under a Consignment Arrangement On March 15, 2020, Drexel Corp. provides goods to a retailer through consignment where Drexel Corp. customer is documented when the goods are scanned at the cash register of the retailer. Drexel Corp. product can be returned to Drexel Corp. at anytime. Drexel Corp. has the right through the contract to r sales to the final customer. After the sale of the products to the final customer, the retailer cannot retur and the retailer sold 2,000 units. The product cost Drexel Corp. $80 per unit and the product was sold fo on the sale of product less a 10% commission on April 7, 2020. a. At what point should Drexel Corp. recognize revenue? Recognize revenue when the product is sold to the end customer Cr. b. Record Drexel's entries on March 15, 2020, March 31, 2020, and April 7, 2020. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as th Date Account Name Dr. Mar 15, 2020 Accounts Receivable 276,000 x Due from Consignee 0 276,000 x Mar 31, 2020 Due from Consignee 0 x 0 Sales Revenue 230,000 x Accounts Receivable 230,000 To record the sale of product. Cost of Goods Sold 160,000 Inventory 0 160,000 To record the cost of sale of product. April 7, 2020 Sales Commission Expense 23,000 X Accounts Receivable X X X 0 2300 x