Some firms that dispose of only a small part of their total output by consignment shipments fail to make any distinction between consignment shipments and regular sales.Which of the following would suggest that goods have been shipped on consignment?
A) Numerous shipments of small quantities.
B) Numerous shipments of large quantities and few returns.
C) Large debits to accounts receivable followed by small periodic credits.
D) Large debits to accounts receivable followed by large periodic credits.

Question

Quizplus · Accepted Answer

Consignment shipments typically involve large debits to accounts receivable when goods are shipped, followed by small periodic credits as the consignee sells the goods and remits payment.

Some Firms That Dispose of Only a Small Part of Their