Revenue Recognition - Point of Sale

The video tutorial explains the principles of revenue recognition at the point of sale. It covers scenarios such as sales on credit, where revenue is recognized if payment is reasonably assured, and sales involving shipping, where terms like FoB destination or shipping point determine when ownership transfers. It also discusses handling revenue when goods have return rights, offering methods to record revenue either immediately or after the return period expires.

What happens if there is a right to return the item? How can revenue be recorded in this case?

What are the general rules or principles surrounding when to recognize revenue at the point of sale?