Question
The company allows customers to return items for any reason within 45 days of sale. Management estimates that 15% of its sales in June 2021
The company allows customers to return items for any reason within 45 days of sale. Management estimates that 15% of its sales in June 2021 will be returned in July 2021. According to GAAP, should the effect of these returns be recorded in the financial statements for the Year ended June 30, 2021 or for the Year ended June 30, 2022? Briefly explain your answer.
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
16th Edition
78110939, 978-0078110931
