Sale of Custom Merchandise Custom Wares is a public company that sells custom merchandise, including engraved picture frames. On December 15, the company received a pwchase order and payment from a customer (Jim Burke) for the purchase of 200 custom frames . The frames will be used as a wedding favor and engraved "Jim and Jess, 2020."

On December 30, Custom Wares shipped the completed order to Mr. Burke, and Mr. Burke received the frames via UPS on January 2. Company policy allows customers to return merchandise within 30 days for a full refund if they are not to the customer's satisfaction. Historically, Custom Wares has experienced product return rates of 2%. The frames sell for $25 each and cost the company approximately $ 10 each.

Custom Wares must determine whether it can recognize the revenue from the sale, when, and in what amount. For example, should Custom Wares wait until the 30-day return window lapses? Citing guidance from the Codification as support, attempt the journal entries that Custom Wares should record at the time of order, at the time of customer receipt, and-if applicable-upon expiration of the return window.