Question
How does B&N estimate its sales returns? (Review the Revenue Recognition footnote below.) Revenue Recognition Revenue from sales of the Companys products is recognized at
How does B&N estimate its sales returns? (Review the Revenue Recognition footnote below.)
Revenue Recognition
Revenue from sales of the Companys products is recognized at the time of sale or shipment, other than those with multiple elements and Free On Board (FOB) destination point shipping terms. The Company accrues for estimated sales returns in the period in which the related revenue is recognized based on historical experience. ECommerce revenue from sales of products ordered through the Companys websites is recognized upon estimated delivery and receipt of the shipment by its customers. Freight costs are included within the Companys cost of sales and occupancy. Sales taxes collected from retail customers are excluded from reported revenues. All of the Companys sales are recognized as revenue on a net basis, including sales in connection with any periodic promotions offered to customers.
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