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Revenue Recognition Principle
The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.
Merchandisers
Businesses that purchase and sell goods without significantly altering their form.
Performance Obligation
A duty or commitment that a company must fulfill to transfer a promised good or service to a customer.
Sales Returns And Allowances
Sales returns and allowances account for the reduction in sales revenues due to returned or defective products allowed by a company to its customers.
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