Special Order Special Days is a public company that sells customized products. On December $20,$ the company

received a purchase order and payment from a customer $($Kate McVige$)$ for the purchase of $100$ custom vases. The

vases will be used as a wedding favor and engraved "Kyle and Kate, $2023."$

On December $31,$ Special Days shipped the completed order to Ms$.$ McVige, and Ms$.$ McVige received the vases

via USPS on January $3.$ Special Days sells its goods FOB Shipping Point, meaning control transfers to the customer

at the time of shipment. Company policy allows customers to return merchandise within $30$ days for a full refund if

they are not to the customer's satisfaction. Historically, Special Days has experienced product return rates of $2\mathrm{.}5\%.$

The vases sell for $$35$ each and cost the company approximately $$15$ each.

Special Days must determine when it can recognize the revenue from the sale, and in what amount. For example,

should Special Days wait until the $30-$day return window lapses? Citing guidance from the Codification as sup$-$

port, show the journal entries that Special Days should record at the time of order, at the time of shipment, and$-$if

applicable$-$upon expiration of the return window.