Jeremiah sells snowboards and related gear. Returns, which are material and reasonably predictable, are permitted within 60 days. Under GAAP, Jeremiah should:

		Record an allowance for projected sales returns in the period of the sale.
		Wait until the right to return has expired for each transaction before recording the sale.
		Debit sales in the period a customer returns merchandise to avoid overstating earnings.
		Debit a contra-sales account (e.g., sales returns) in the period a customer returns merchandise.