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Company aBay Inc., an online retailer, sells products that they never hold in inventory; they simply arrange for the supplier to ship the products directly
Company aBay Inc., an online retailer, sells products that they never hold in inventory; they simply arrange for the supplier to ship the products directly to the end customer, and bears no inventory risk and credit risk. What is the correct accounting rules when they record revenues?
a the gross amount of sales proceeds received from their customers
b the net difference between sales proceeds and their cost
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