On June 1, Freedom Distributions (FD) shipped 100 TVs to Universal TV (UTV) on consignment. FD buys these TVs from their supplier for $ 600 each and sells them to UTV for $ 800. UTV then retails them for $ 1,200 each. By the end of June, Universal TV reported that they had sold 60 of these TVs, and remitted the appropriate amount to FD. How much revenue should be recorded by FD in connection with this transaction?
A) $ 72,000
B) $ 60,000
C) $ 48,000
D) $ 36,000

Question

Quizplus · Accepted Answer

FD should record revenue of $48,000, which is calculated by multiplying the 60 TVs sold by UTV by the $800 sale price per TV that FD sells them for to UTV.

On June 1, Freedom Distributions (FD) Shipped 100 TVs to Universal