Q1) Many companies sell products pemitting their customers the right to return merchandise if they are not satisfied. Because return of merchandise can retroactively negate benefits of having made a sale, seller should meet certain criteria before revenue is identified in situations when right of return exists. SFAS No.48, Revenue recognition when right of return exists, lists criteria, most criteria of which is that seller should be able to make reliable estimates of future returns.
What factors does standard describe that may impair ability to make reasonable estimate of returns?