The following are some of the terms discussed in the chapter:
1. Performance obligation 4. Contract-based approach
2. Right of return 5. Refund liability
3. Variable consideration 6. Estimated inventory returns

Instructions
Match each term with the best description below. Each term may be used more than once, or may not be used at all.
a. A liability account that shows the estimate of potential refunds a company is obligated to give customers.
b. A customer’s right to return goods to a seller within the stated return period.
c. A method of revenue recognition where sales are recorded in the amount that reflects the consideration a business expects to receive.
d. An asset account that shows the estimated cost of the goods a seller has a right to receive if goods are returned by customers.
e. Any amount that may change what the seller receives when the performance obligation is complete.
f. The promise made by a seller to deliver goods to a customer.