Mishima Technologies Company introduced Product X to the market on December 1. The new product carries a one-year warranty In its first month on the market, Mishima sold 1,000 units of the new product for a total of $1,000,000. Customers have an unconditional right of return for 90 days if they are not completely satisfied with the product. During the month of December, customers returned 200 units of the new product that they had purchased for $200,000.
Required:
Determine when it would be appropriate for Mishima Technologies Company to recognize revenue from the December sales of the new product.