Variable consideration: Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events. 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 amount of revenue recognized upon delivery to its distributor.

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Chapter 5, Problem 5.16BE

To determine

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

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 amount of revenue recognized upon delivery to its distributor.

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