In Which of the Following Cases, Under GAAP, Will a Company

Multiple Choice

In which of the following cases, under GAAP, will a company usually not be able to recognize revenues at the time of shipment?

A) The customer has the right to return products. In the past, product returns have ranged from 5% to 7% of sales.
B) The customer has bought on credit. In the past, bad debts have ranged from 3% to 5% of sales.
C) The customer has bought on credit and has the right to return the goods for up to one year. This is a new market for the company.
D) The customer has bought on credit, and has one year to pay. In the past, 93% of customers have in fact paid.