A consignee sells consigned goods for \$3,000, earning a \$300 commission. What is the journal entry to record this transaction?

• A. Debit Cash \$3,000; Credit Revenue \$300; Credit Liability \$2,700
• B. Debit Cash \$3,000; Credit Revenue \$300; Credit Liability \$3,000
• C. Debit Cash \$2,700; Credit Revenue \$300
• D. Debit Cash \$3,000; Credit Revenue \$3,000

Answer: (A)