When rights of return exist, or are likely to be accepted, _______. A. the firm should...

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When rights of return exist, or are likely to be accepted, _______. A. the firm should...

When rights of return exist, or are likely to be accepted, _______.

		A. the firm should simply expense them as incurred
		B. should restrict cash to cover any potential right of return or warranty claim
		C. a reasonable estimate of refunds should be made when revenue is recognized.
		D. a company should consult with other firms in the industry with respect to best practices

business accounting

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Answer 1

Answer #1

When rights of return exist or are likely to be accepted;--

C. a reasonable estimate of refunds should be made when revenue is recognized

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Answer 2

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