will rate asap

Appalachian Toy Company sells wooden toys to Banner Elk General Store with an agreement that Banner Elk can return for full credit any toys not sold within a 3-month period. Historically, Banner Elk has returned approximately 20% of the toys from Appalachian. How should Appalachian record sales to Banner Elk? Appalachian should record sales revenue at the gross amount when the goods are transferred to Banner Elk. Appalachian should not record sales revenue until the return period has expired. Appalachian should record sales revenue net of estimated returns when the goods are transferred to Banner Elk. Appalachian should record sales revenue as the toys are sold by Banner Elk