Jel Co., a consignee, paid the freight costs for goods shipped
from Dale Co., a consignor. These freight costs are to be deducted
from Jel’s payment to Dale when the consignment goods
are sold. Until Jel sells the goods, the freight costs should be
included in Jel’s

(d) In a consignment, the manufacturer or wholesaler is
referred to as the consignor and the dealer or retailer is referred to
as the consignee. In such an arrangement, title to the goods remains
with the consignor until they are sold to a third party. Jel’s
payment of reimbursable freight costs results in an account receivable
from Dale, which Jel will subtract from the sale proceeds it
remits to Dale. Answers (a), (b), and (c) are incorrect because the
consignee, Jel, generally does not bear any costs associated with
the sale of consigned goods.