hello sir... when there is a sale with right of return (eg, can return before 30 days)
so the initial measurement will be
DR cash
CR refund liability
but, what is the initial measurement for inventory?
after 30 day, we bring back the asset right? why is it like that?
Ask the Tutor ACCA SBR
Sale with right of return
5y ago#1If it is likely that goods will be returned:
Dr Cash Cr Refund liability
At SFP date, the inventory will not be physically present for the count and valuation, so we have to recognise inventory currently with customer:
Dr Inventory (at cost) Cr COS
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