This is the question:
Research a company which has recently had a product recalled. Explain the purpose of the recall and the accounting effects.
I went to:
US Consumer Product Safety Commission - Recent Recalls and Product Safety News
Byer California Recalls Girls' Jackets with Drawstrings Due to Strangulation Hazard...
Please help me with what the accounting effects would be. Thank you.© BrainMass Inc. brainmass.com June 3, 2020, 11:51 pm ad1c9bdddf
When a product recall is done, it is not taken as a sale reversal. The sales have been made earlier. A product recall is treated as an expense and a liability created.
A product recall ...
The solution explains the accounting effects of a product recall