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Adventure sells used videogames for cash and provides a one-week return right. Returns are material and reasonably predictable. Adventure should: A. Not record sales until
Adventure sells used videogames for cash and provides a one-week return right. Returns are material and reasonably predictable. Adventure should:
A. Not record sales until the right to return has expired.
B. Record a contra-receivable in the year of the sale.
C. Credit sales in the period of the return.
D. Recognize a refund liability associated with estimated returns
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