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Unformatted text preview: in the "pronouncements" section of the website. Obtain a copy of FAS 48, then respond to the following questions. (a) If a customer buys goods on account, is it ordinarily recognized as a sale prior to collection? (b) If a customer buys goods on account, but has the right to return goods, what conditions must be met to record the transaction as a sale? (c) If the conditions described in part (b) are not met at the time of sale, when would the sale be recorded? (d) If a customer buys goods for cash, would you answer to part (b) seem to change? Does cash payment generally impact the decision as to when to record a sale?...
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11