Olson Metrics Ltd has been the dominant firm in its
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.

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