Bontaine Publications an accrual basis calendar year Corporation publishes and
Bontaine Publications, an accrual basis, calendar year Corporation, publishes and sells weekly and monthly magazines to retail bookstores and newsstands. The sales agreement provides that the retailers may return any unsold magazines during the one-month period after purchase. Bontaine will refund one-half of the purchase prices of each returned magazine. During December 2015, Bontaine recorded $919,400 of magazine sales. During January 2016, Bontaine refunded $82,717 to retailers that returned magazines purchased during December. Can Bontaine reduce its 2015 income by the refund paid?
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