Performance obligation: Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract. Right to return: Right to return refers to the rights that are given by the seller when customer returns merchandise for following reasons: Goods or services don’t want by customer Not satisfies Unable to resell the goods or services To calculate: The value of recognized revenue.

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Chapter 5, Problem 5.13BE

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Right to return:

Right to return refers to the rights that are given by the seller when customer returns merchandise for following reasons:

Goods or services don’t want by customer

Not satisfies

Unable to resell the goods or services

To calculate: The value of recognized revenue.

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