IFA28 – Consignment Sales Example – Intermediate Accounting

Download the Workbook: http://www.tonybell.com Unlock 100+ Members Accounting Tutorials:    / @tony-bell   In This Video: We wrap up Module 6 by working through Problem 6-16A, focusing on the specific revenue recognition rules for Consignment Sales. Using an arrangement between Vintage Audio (the consignor) and Metro Music (the consignee), we walk through the accounting treatment for shipping vintage-style speakers on consignment, paying freight costs, and recording the eventual sale. We will calculate the 20% commission and prepare the necessary journal entries from the perspective of both the consignor who retains ownership of the inventory, and the consignee who sells it on their behalf. Module Overview (IFA20–IFA28): This module explores Revenue Recognition in depth. We will thoroughly examine the 5-step revenue recognition model and apply it to a variety of complex business scenarios. You will learn how to handle multiple performance obligations, variable consideration, discounts, and long-term contracts to ensure revenue is recognized at the proper time and in the correct amount.