Marlene, a fine arts student, makes gift cards from her artwork.She has made an arrangement with a local bookstore that the bookstore will carry her cards for her but only pay her when they are sold.The bookstore will keep 10% of the proceeds from the sale.This is an example of which of the following?

Question

Quizplus · Accepted Answer

This is an example of a consignment sale, where the artist retains ownership of the gift cards until they are sold, and the bookstore takes a percentage of the proceeds as commission. This is different from an installment sale, where the buyer pays in installments, and the revenue recognition criteria of performance or collectability, which are not relevant to this scenario.

Marlene, a Fine Arts Student, Makes Gift Cards from Her