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Hi sir, if let’s say goods are being sold on a sale or return basis, and customers have not returned goods on such sale or return agreement before , So can the company recognise revenue ?
Another situation , lets say the company is certain that customers will not return the goods back, Can the company recognise revenue ?
“…and customers have not returned goods on such sale or return agreement before , So can the company recognise revenue ?”
Tricky. It comes down to probability. If this particular customer is a new customer and has only had one previous delivery (that they didn’t return) that’s a 100% non-return history for that customer
Anther customer that has dealt with us for 42 years once returned a consignment of goods 13 years ago. But that customer no longer has a 100% record so maybe we shouldn’t recognise the sale to that customer
What do you think?
“Another situation , lets say the company is certain that customers will not return the goods back, Can the company recognise revenue ?”
If goods are sold on a sale or return basis and the company is certain these goods will not be returned … why sell them on a sale or return basis? Why not just sell them?
Besides, nothing in this life is certain except death, taxes and time pressure in ACCA exams
OK?
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