Fare Jewelry Company is holding goods on consignment from Tomko with a selling price of $1,500,000. Fare is promised a commission of 25% for goods sold. By the end of 2017 Fare has sold $440,000 of goods. Refer to Fare Jewelry. How much revenue should Fare recognize for 2017 on this transaction?

Question

Quizplus · Accepted Answer

Fare Jewelry should recognize revenue based on the commission earned from the sales made. The commission is 25% of the $440,000 sold, which amounts to $110,000.

Fare Jewelry Company Is Holding Goods on Consignment from Tomko