When a vendor is exposed to continued risks of ownership because of potential return of the product, which of the following accounting procedures should NOT be used?
A) Recording the sale, and accounting for returns as they occur in future periods.
B) Not recording the sale until all return privileges have expired.
C) Recording the sale, but reducing revenue by an estimate of future returns.
D) Recording the sale, but ignoring future returns.
Correct Answer:
Verified
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