Consigned Goods



[/Q/]
Q4. Consigned Goods
Based on the information below, which entity reports the consigned goods as its inventory at December 31, 20×1?

[Information for Q4]
(1) December 20, 20×1, Entity 4A sent 100 units of goods to Entity 4B under a consignment contract.
(2) December 31, 20×1, Entity 4B reported that 100 units were in its warehouse.
(3) January 12, 20×2, Entity 4B reported that 100 units of consigned goods were sold to a customer.

[/A/]
1. Entity 4A reports 100 units of consigned goods as its inventory at December 31, 20×1.

2. Under a consignment contract, consignor owns consigned goods until the goods are sold to customers.

3. At December 31, 20×1, 100 units of consigned goods were owned by Entity 4A, even if Entity 4B had physical possession of goods.