If cash has been collected from a customer, recognizing estimated sales returns results in recognizing a refund liability.

Name: If cash has been collected from a customer, recognizing estimated sales returns results in recognizing a refund liability.
Brand: Quizplus
Rating: 4.7 (53 reviews)

Question

Quizplus · Accepted Answer

Recognizing estimated sales returns means that a portion of the revenue recognized from the sale is expected to be returned, resulting in a refund liability that must be recognized on the balance sheet.

If Cash Has Been Collected from a Customer, Recognizing Estimated