An alternative available when the seller is exposed to continued risks of ownership through return of the product is
A) recording the sale, and accounting for returns as they occur in future periods.
B) not recording a sale until all return privileges have expired.
C) recording the sale, but reducing sales by an estimate of future returns.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Each option (A, B, C) represents a valid accounting treatment for sales when the seller is exposed to risks of ownership due to product returns. The choice depends on the specific circumstances and accounting policies of the company.

An Alternative Available When the Seller Is Exposed to Continued