You are engaged in the year-end audit of Raintree Distribution Inc. Raintree sells magazines to newsstands and other retailers with a one-month right of return. For example, a retailer can return magazines that are sold in December to Raintree for a full refund until the end of January of the next year. Raintree's year end is December31. On average, the amount of returns is considered material.

Question 1: What is the risk for the financial statements?

Question 2: What is the account impacted and the audit assertion?

Question 3: What are two procedures to perform?