4. Uddin Publishing Co. publishes college textbooks that are sold to bookstores on the following...
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4. Uddin Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price , terms f.o.b. shipping point , and payment is due 60 days after shipment. The retailer may return a maximum of 30 % of an order at the retailer's expense. Sales are made only to retailers who have good credit ratings. Past experience indicates that the normal return rate is 12%. The costs of recovery are expected to be immaterial, and the textbooks are expected to be resold at a profit.
A.) Identify the revenue recognition criteria that Uddin could employ concerning textbook sales.
B.) Briefly discuss the reasoning for your answers above.
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