Boomerang Computer Company sells computers with an unconditional right to return the computer if the customer is not satisfied. Boomerang has a long history selling these computers under this returns policy and can provide precise estimates of the amount of returns associated with each sale. Boomerang most likely should recognize revenue:

When Boomerang delivers a computer to a customer.

Explanation:

Revenue is recognised by a business when it is earned. That is when the transaction is completed and a sale is established.

In the given scenario when a customer buys goods for Boomerang they have unconditional right to return the computer if the customer is not satisfied.

The situation where Boomerang should recognise revenue is when a computer is delivered to the customer and the sale is consummated.

If the company recognises revenue when an order is made, there is possibility of customer returning the computer. Then their revenue data will be inaccurate

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