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E5-22: Assessing Revenue Recognition Timing

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E5-22: Assessing Revenue Recognition Timing
Exercises

E5-­‐22 Assessing Revenue Recognition Timing Explain when each of the following business should recognize revenues:

a. A clothing retailer like The Limited.

Revenue recognition: Sales basis method (at the time of sale). The revenue for a retail store like The Limited should recognize their revenue when the customer pays for his/her clothes. In case of a return of merchandise the store should open a new transaction where they
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