When does a consignor recognize revenue in a consignment relationship?
A consignor does not recognize revenue when the goods are transferred to a consignee. Rather, the consignor would only recognize revenue when the goods are sold by the consignee to a 3rd party (i.e. customer). When the consignee sells the goods to a 3rd party, that is the point at which the consignee can record commission expense for selling the goods on behalf on the consignor.
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