Retail Entity Is Holding Goods on Consignment from Wholesale Entity

Multiple Choice

Retail Entity is holding goods on consignment from Wholesale Entity. According to the contractual arrangement, Retail Entity will receive 20% of the value of any goods sold on consignment from Wholesale Entity. For 20X1, Retail Entity sold $150,000 of merchandise (original cost - $80,000) held on consignment for Wholesale. What is the correct way to account for this transaction?

A) $150,000 - sales revenue; $80,000 - COGS
B) $30,000 - sales revenue; $16,000 - COGS
C) $30,000 - commissions revenue
D) $0 - no revenue has been earned