How do I account for selling on consignment? (eBay Trading Assistant)

Selling items on consignment can be tricky for both the consignor (seller) and the the consignee (trading assistant). In a nutshell, the consignor gives an item to the consignee to sell. The consignee is responsible for any fees or other transactions related to the sale. In some cases, the consignee is paid a flat fee for selling the consignor products, but the seller and trading assistant may agree upon a set percentage of the sale as payment for the consignee.

Here's an example with Joan, an eBay seller, and Charlie, a trading assistant:

Joan uses Charlie, a Trading Assistant,  to sell her sewing machine.

Charlie lists the sewing machine, and it sells for $100.

Charlie gives Joan $50 for the sewing machine, and keeps the other $50 as income.

Charlie incurs the eBay and PayPal fees as well as any shipping charges. He also receives the shipping income as well as Sales Tax when appropriate. Charlie may or may not split these incomes/fees with Joan, but in either case, Charlie must keep track all of these transactions.  

The $50 Charlie gave Joan is considered "Cost of Goods Sold" for Charlie since it's what he paid to acquire the item to sell.

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