Certain Industries Allow Full or Partial Refunds for Returned Inventory

Certain industries allow full or partial refunds for returned inventory.In such cases, which of the following is INCORRECT?

A) The vendor retains the risks and rewards for those items expected to be returned.
B) If returns can be reasonably predicted, then the goods may be considered sold by the vendor and removed from inventory.
C) If returns cannot be predicted, the sale is not recognized and the goods are not removed from inventory.
D) If returns cannot be predicted, the sale is still recognized but the goods are not removed from inventory.