Give Three Inc., a maker of a popular series of video games for various systems, shipped several thousand units to three distributors of its games on December 20, 2008, to ensure that the anticipated heightened demand for its games would be met during the last two weeks of the calendar and fiscal year. The distributors were told to hold the shipments and to return any part of them that they couldn't sell after the first of the new year. The company planned to book the revenue associated with these shipments at the point of delivery to the distributors and to make an entry debiting Sales returns and allowances, which is a contra-revenue account (shown as a deduction from Sales revenue), in 2009 for any parts of the shipments that are ultimately returned.

Required:
1. Critically evaluate Give Three's proposed accounting treatment.
2. How should revenue related to these shipments be recognized in light of GAAP regarding revenue recognition?
3. Locate The Wall Street Journal article from February 14, 2002 entitled, “TakeTwo Announces SEC Investigation,” and identify the primary accounting issue discussed in the article.
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