Answer
Products on consignment refers to inventories owned by Strider Ent, which are physically transferred to another enterprise. However, Strider Ent., retains title to the goods until their sale by Chavez Inc.
Work Step by Step
The goods consigned are still included by Strider Ent., in the inventory section of its balance sheet. Often the inventory is reclassified from regular inventory to consigned inventory Chavez Inc on the other hand will neither report liability or inventory.
