Which of the following statements is correct?a. Sales returns and allowances increase a company’s profit.b. If a customer returns a product, sales revenue will be credited.c. The performance obligation in a sale of products is generally satisfied when thecustomer orders the products.d. A company must accrue for estimated future returns at the end of the period in whichthe related sales revenue is recognized.
Which of the following statements is correct?a. Sales returns and allowances increase a company’s profit.b. If a customer returns a product, sales revenue will be credited.c. The performance obligation in a sale of products is generally satisfied when thecustomer orders the products.d. A company must accrue for estimated future returns at the end of the period in whichthe related sales revenue is recognized.
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 9MC: Which of the following is the principle that a company must recognize revenue in the period in which...
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Which of the following statements is correct?
a. Sales returns and allowances increase a company’s profit.
b. If a customer returns a product, sales revenue will be credited.
c. The performance obligation in a sale of products is generally satisfied when the
customer orders the products.
d. A company must accrue for estimated future returns at the end of the period in which
the related sales revenue is recognized.
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