Answer:
The revenue should not be recognized because of the unusual and subjective terms under which the buyer has the right to return the product.
Explanation:
If a buyer of goods has the right to return a product, the transaction is considered a sale with a right of return. When regular sales are made under these terms and there is a reasonable basis for estimating returns, revenue from the sale ought to be recognized and an allowance for returnsshould be established.
However, when the rate of returns cannot be reasonably estimated, revenue is not recognized until the right of return expires. Even though the goods were shipped in 2015, until the buyer accepts the goods or the right to return them expires, revenue would not be recognized.
Answer:
Has not developed an understanding of the cues to performance of these pragmatic skills.
Explanation:
In this context, Understanding cues to performance refers to humans' ability to observe the situation around us, and deliver the most appropriate technique that help us benefit from the situation.
From the excerpt, we know that John has a very good pragmatic skills in general. But this test is most likely taken under a structured situation that does not represent the actual real life. So, when John actually encountered it in his social life, he does not understand when is the proper time to actually use the skill.
