right of return Definition | Business Dictionaries from AllBusiness.com
Facebook Twitter Google+ You Tube RSS Feed

Business Glossary

SEARCH THE BUSINESS GLOSSARY

Business Definition for: right of return
right of return

option of purchaser to give goods back to the seller for full credit. The buyer's right to return merchandise precludes revenue recognition by the seller at the time of sale unless all of the following conditions are met: (1) selling price is determinable; (2) buyer's obligation to pay is not contingent on resale of the product; (3) buyer must pay for item if lost; (4) acquisition by buyer has economic substance; (5) future performance by seller is not required for resale by buyer; and (6) future returns may be reasonably estimated. If these conditions are not satisfied, revenue and related expenses must be deferred until the conditions are met or the right of return has expired.

right of return

option of purchaser to give goods back to the seller for full credit.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

Newsletter

Weekly Roundup

Sign up for our weekly Experts roundup, delivered to your inbox each Saturday morning.

Most Recent From our Experts

AllBusiness Experts

AllBusiness Greatest Hits

;
Close

Real Business Owners, Real Business Advice!

Sign up for practical, real-world solutions from successful business owners delivered to your inbox each Saturday morning. FREE.