Werribee Direct Ltd is a mail order company that allows its customers to order on-line and return the goods without obligations.Werribee Direct Ltd had experienced a high ratio of returned merchandise from on-line sales.What is the appropriate accounting treatment for this sale that is in accordance with AASB 118 "Revenue"?
A) Record the sale only when the option to return has expired;
B) Record the sale and reduce this by an estimate of future returns;
C) Record the sale and account for returns as they occur;
D) Record the sale as deferred revenue and recognise revenue progressively until expiry of the privileges;
E) E: All of the given answers.

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The Answer of Werribee Direct Ltd is a mail order company that allows its customers to order on-line and return the goods without obligations.Werribee Direct Ltd had experienced a high ratio of returned merchandise from on-line sales.What is the appropriate accounting treatment for this sale that is in accordance with AASB 118 "Revenue"?
A) Record the sale only when the option to return has expired;
B) Record the sale and reduce this by an estimate of future returns;
C) Record the sale and account for returns as they occur;
D) Record the sale as deferred revenue and recognise revenue progressively until expiry of the privileges;
E) E: All of the given answers.

Werribee Direct Ltd Is a Mail Order Company That Allows