Santos Company Allows a Liberal Return Privilege on Its Normal

question 9

Multiple Choice

Santos Company allows a liberal return privilege on its normal sales.Products purchased by customers may be returned within 90 days of purchase if in resalable condition,for a full refund.The following information relates to 2014:

Assuming that all criteria of SFAS No.48,"Revenue Recognition When Right of Return Exists," are not met,what is the gross margin to be reported by the company in 2014?

• A)$4,000
• B)$10,000
• C)$40,000
• D)$2,000

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Definitions:

Cross-Cultural Studies

are research efforts that compare cultural contexts to understand how differing backgrounds influence behavior, values, and social norms.

Macrosystem

In ecological systems theory, the overarching societal and cultural conditions that affect an individual's development, including laws, resources, and cultural values.

Mesosystem

A concept in ecological systems theory that refers to the interconnections between different microsystems in an individual's life.

Ethical Guidelines

Rules or principles designed to govern conduct in various professional contexts, ensuring integrity and fairness.