A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.

Question

Quizplus · Accepted Answer

Goods out on consignment with an agent are still the property of the consignor and should be included in their ending inventory even if they are not physically in their possession. This is because the consignor still has legal ownership of the goods until they are sold to a customer by the agent.

A Consignor Who Has Goods Out on Consignment with an Agent