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Consider the following actual footnote from the 2014 Walmart Annual Report: Revenue Recognition Sales The Company recognizes sales revenue, net of sales taxes and estimated
Consider the following actual footnote from the 2014 Walmart Annual Report: Revenue Recognition Sales The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time it sells merchandise to the customer. Which of the following is true? a. Walmart debits "Cash" for the amount of sales tax collected and credits "Sales Tax Revenue b. Walmart reduces its "Sales Revenue" as soon as it makes a sale, for the amount of estimated returns, based on historical patterns of returns by prior customers c. Walmart reports a "Sales Returns Expense" when a customer returns an item. d. None of the above are true
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