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If the Consignee Uses a Consignment-In Account and Has a Debit

Question 71

Multiple Choice

If the consignee uses a consignment-in account and has a debit balance, the


A) consignor has an obligation for that amount to the consignee
B) consignee has an obligation for that amount to the consignor
C) consignee reports the amount as a contra-asset account on the balance sheet
D) consignor reports the amount as a contra-asset account on the balance sheet

Correct Answer:

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