Memorex Disks Sells Computer Disk Drives with Right-Of-Return Privileges

question 14

Multiple Choice

Memorex Disks sells computer disk drives with right-of-return privileges. Returns are material and reasonably predictable. Memorex should:

• A) Not record sales until the right to return has expired.
• B) Record an allowance for sales returns in the year of the sale.
• C) Debit sales returns in the period of the return.
• D) Debit sales in the period of the return.

---

Definitions:

Opportunity

A set of circumstances that makes it possible to do something or for something to happen.

Relevant Technology

Technology that is applicable and pertinent to a specific topic, issue, or area of interest.

SWOT Model

A strategic planning tool that identifies and analyzes the Strengths, Weaknesses, Opportunities, and Threats of an organization, project, or personal venture.

Threats

Expressions of intent to cause harm or difficulty to someone or something.