Company A manufactures and sells small paper goods. They sell to major retailers such as Costco, Sam's Club and Wal-Mart. These large retailers demand that should goods be unsold at any time in the future, they may return the goods, without limitation, to the Company A and charge back transportation and a repack charge.
When should Company A record the sale? At the date of original shipment to the retailers; at the date the retailers actually sell the goods; when the retailers return merchandise and any unreturned goods can be determined to be sold? Are these goods "consigned goods"?© BrainMass Inc. brainmass.com June 3, 2020, 10:46 pm ad1c9bdddf
This is an example of a consignment sale and consigned goods. Hence, Company A should only record sale at the time that it is able to ...
The solution examines company A manufactures and sells small paper goods. When company A should record a sale is determined.