Olson Metrics Ltd. has been the dominant firm in its field. The company’s most popular product has been the Model T, which carries a retail price of $ 350. The Model T costs $ 250 per unit to produce. Recently, the company introduced a new version, Model A, priced at $ 380.
When the model A was released, Olson reduced the retail price of the remaining 1,000 units of Model T to $ 300. Despite the sharp price reduction, the demand for the Model T dropped sharply. Therefore, Olson decided to sell 600 of the remaining units on consignment through FloorMart Inc. as a private label product at $ 220 per unit. FloorMart will collect a com-mission of 20% per unit. Olsen will lower the price of the remaining 400 units in inventory to $ 280.
Prepare any journal entry( ies) that are necessary to record the effects of the above information.