Can provide precise estimates of the amount of returns


Boomerang Computer Company sells computers with an unconditional right to return the computer if the customer is not satisfied. Boomerang has a long history selling these computers under this returns policy, and can provide precise estimates of the amount of returns associated with each sale. Boomerang most likely should recognize revenue:

1.When Boomerang receives cash from the customer.

2.When Boomerang delivers a computer to a customer.

3.When a customer returns a computer.

4.Never, because the right of return is unconditional.

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Accounting Basics: Can provide precise estimates of the amount of returns
Reference No:- TGS0709891

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