Question: Under the contract base approach, when management estimates the extent of expected returns as a form of variable consideration, the company must establish a(n):

returns as a form of variable consideration, the company must establish a(n):

Warranty expense account O Returns and allowances account Refund liability account Warranty

Under the contract base approach, when management estimates the extent of expected returns as a form of variable consideration, the company must establish a(n): Warranty expense account O Returns and allowances account Refund liability account Warranty liability account

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