The Journal Entries to Recognize the Revenue from a Consignment

question 27

Multiple Choice

The journal entries to recognize the revenue from a consignment sale would likely be identical under the earnings and the contract-based approaches assuming

• A) the contract is entered into at the same time as when control over the goods is passed to the customer.
• B) the underlying goods or services are valued under the residual value method.
• C) the completed contract method is used.
• D) the percentage-of-completion method is used.