If Consignment-out has a debit balance, the account should be disclosed on the balance sheet as a(n)
A) expense account
B) contra-receivable account
C) inventory account
D) liability account

Question

Quizplus · Accepted Answer

A consignment-out account with a debit balance represents goods sent out on consignment that are still owned by the consignor, thus it should be disclosed as inventory on the balance sheet.

If Consignment-Out Has a Debit Balance, the Account Should Be