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so this is our second lecture that deals with the accounts receivable account and looking further into the complexities that concern accounts receivables this lecture is going to focus on two items one is sales with right to return and also financing with our receivables so Smith writes return are very very similar in treatment to what we saw with the allowance for doubtful accounts the only difference is that there are not two methods generally accepted to to account for returns we use something much more similar to the income statement method except that rather than estimating an expense what we are estimating is actually a contra revenue account and well get into that in a second but you know again with all of this its good to know why were doing it the right of return is going to be a key inducement for someone to buy an item from a store of course you know youre more likely to buy something if you could return it if youre unsatisfied with it and because that right of return d
