A company sells a product with a 30-day return policy. Revenue should be recognized

A company sells a product with a 30-day return policy. Revenue should be recognized

A company sells a product with a 30-day return policy. Revenue should be recognized:

A. When the product is shipped

B. When payment is received

C. When the return period expires

D. When the customer receives the product

Answer: C

Explanation: ASC 606-10-25-11 requires recognizing revenue only when the return period expires (i.e., no significant obligation for returns remains).