Allowance for estimated returns


A company ships inventory to its distributor and on the condition that the company will accept any returns from the distributor if the distributor cannot sell the inventory to end customers. If the Company has recorded revenue upon shipment and did not record an allowance for estimated returns, what fraud scheme has management committed?

a. Kiting

b. Re -dating transactions

c. Partial shipments

d. None of the above

e. Channel stuffing

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Accounting Basics: Allowance for estimated returns
Reference No:- TGS056036

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