If the consignment-in account has a credit balance, it is reported on the consignee's balance sheet as a(n)
A)contra-asset account
B)revenue account
C)liability account
D)equity account

Question

Quizplus · Accepted Answer

A credit balance in the consignment-in account represents goods that have been received by the consignee but have not yet been sold. This means that the consignee has a liability to the consignor for the value of the goods held in inventory. Therefore, the consignment-in account is reported as a liability account on the consignee's balance sheet.

If the Consignment-In Account Has a Credit Balance, It Is