Meyersons primary business is and was, at all relevant times, the sale of prescription pharmaceutical products. Meyerson considered it top priority to ensure that the companys reported results met or exceeded the companys targets. Meyerson recognized revenue from sales of its pharmaceutical products upon shipment (f.o.b. shipping). Around the fourth quarter of 2007, Meyerson began facing millions of dollars in gaps between the targets it had set for its business units and their actual operating results. Meyerson responded to this pressure primarily by inducing the companys wholesalers to purchase $40 to $50 million of excess inventory of Meyersons pharmaceutical products. Meyersons channel stuffing in 2010 and 2011 resulted in a steady build-up in excess wholesaler inventory, and by October 23, 2011, channel stuffing had caused excess wholesaler inventory of Meyersons products to steadily increase to at least $1 billion. In order to facilitate channel stuffing, Meyerson extended payment terms by 30 days for wholesalers agreeing to take these additional products. Also, in order to induce its wholesaler to take on more inventory, around July 2009, Meyerson entered into an agreement to pay its second largest wholesaler 2% of the value of any excess inventory it agreed to take, per month, until this wholesaler sold the products. For purposes of this agreement, Meyerson permitted its second largest wholesaler to treat anything over two weeks on hand as excess inventory. Meyerson agreed to pay the 2% to this wholesaler through sales incentives on future purchases, primarily in the form of price discounts. Meyerson knew that these payments covered this wholesalers costs of carrying excess inventory, and guaranteed this wholesaler would earn its target return on investment (ROI) of about 24% per year on any excess inventory this wholesaler agreed to take. Meyerson recorded revenue from all shipments to this wholesaler upon shipment. Answer the following questions as a neutral party. Please support your answers by accounting rules, concepts, or standards. Simple yes or no answers will receive no credit. Q1. What type of risks does channel stuffing impose on Meyersons future performance? What issues should Meyerson consider when recognizing revenue resulting from channel stuffing? Q2. What accounting issues should Meyerson consider when extending payment terms for wholesalers taking on excess inventory? Apart from facilitating channel stuffing, how would extending the payment terms affect Meyersons cash flows and net income? Q3. According to the agreement Meyerson entered into with its second largest wholesaler, was it correct for Meyerson to recognize revenue from selling excess inventory upon shipment of the items? Q4. Regarding the information above, what information should Meyerson disclose to investors in its corporate filings?