On November 30,Monet Company consigned 90 freezers to Vangogh Company for sale at $1,600 each and paid $1,200 in transportation costs.A report of sales was received on December 30 from Vangogh reporting the sale of 20 freezers,together with a remittance of the $27,200 balance due.The remittance was net of the agreed 15% commission.How much,and in what month,should Monet recognize as consignment sales revenue? November December
A) $0 $32,000
B) $0 $27,200
C) $144,000 $0
D) $142,800 $0

Question

Quizplus · Accepted Answer

Monet should recognize consignment sales revenue in December when the sales were reported and the remittance was received. No revenue is recognized in November because the freezers were only consigned, not sold, at that point. The sales revenue in December is $32,000, calculated as $1,600 per freezer times 20 freezers sold.

On November 30,Monet Company Consigned 90 Freezers to Vangogh Company