I can't think straight right now. Could someone help me with the question below? This is from the AICPA practice exam.
The company shipped merchandise valued at $45,000 to a consignee on December 24, year 2, and recorded the sale and the relief of inventory on that date. The consignee had not sold the merchandise as of January 5, Year 3. The merchandise has a profit margin of 10% . Record the necessary year 2 adjustments, if any.
The answer is:
DR: Inventory 45K
DR: Sales 50K
CR: COGS 45K
CR: AR 50K
How did they get 50K for sales and AR?
FAR: Passed
AUD: Passed
BEC: Passed
REG: Passed