AFA212 – Revenue recognition – Consignment

Additional information and requirements: The date of consignment and delivery of the beds to PP
Company is March 30, 2021. The first month of operations ends April 30, 2021. “To draw a sight draft”
means “to make an advance payment”. The account to be used for this is ‘Advances from Consignee’.

1. Journal entry/entries for March 30, 2021

2. Journal entry/entries for April 30, 2021
3. Amount of Inventory on consignment to appear in TS Trading balance sheet.
4. Computation of the consignment net profit/(loss) in #33.
Additional information/requirement: Cartage-in are expenses related/similar to freight-in.

1. Net income (loss) on consignment of DVD player.

2. Show computation in arriving at the net income of both the TV set and the DVD player.
3. Show computation in arriving at the cost of inventory on consignment for both the TV set and
DVD player, in reference to Q#10.