A retail firm has just made a sale. However, it values its account receivable at the cost

Question:

A retail firm has just made a sale. However, it values its account receivable at the cost of the merchandise sold, rather than at the amount owing from the customer. What basis of revenue recognition does this practice imply? Under what conditions might a retail firm value this way?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...