Question: Assume a retailer sells 10 widgets for $ 2,000 each. The widgets cost $ 100 and the sale includes a return right for 90 days.

Assume a retailer sells 10 widgets for $ 2,000 each. The widgets cost $ 100 and the sale includes a return right for 90 days. The retailer determines that the probability of returns associated with sales of the widgets is 10%, based on prior customer behavior. The asset recognized at the point of sale for potential returns should be:
a. $ 100
b. $ 900
c. $ 1,000
d. $ 20,000

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