There Are Various Appropriate Accounting Treatments When a Sale Is

Multiple Choice

There are various appropriate accounting treatments when a sale is made subject to a right of return.These methods include:

A) recording the sale and accounting for the returns as they occur in future periods.
B) recording the cash received as held in trust until all return privileges have expired.
C) recording the sale but reducing sales by an estimate of the future returns.
D) recording the sale and accounting for the returns as they occur in future periods and recording the sale but reducing sales by an estimate of the future returns.