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To encourage bookstores to buy a broader range of book titles and to discourage price discounting, the publishing indusrty allows bookstores to return unsold books

To encourage bookstores to buy a broader range of book titles and to discourage price discounting, the publishing indusrty allows bookstores to return unsold books to the publisher. This results in very significant returns each year. To ensure proper recognition of revenues, how should publishing companies account for these returns?

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