How would you recommend the sturdy company account for this

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Question: Though Sturdy has been very successful in Canada, it hasn't had much success in foreign markets, particularly the United States. This year, Sturdy tried a different strategy. It made arrangements with a well-established U.S. distributor, which agreed to market and distribute its products in the southern United States. In late July 2019 (during the third quarter), Sturdy shipped $250,000 worth of furniture to the U.S. distributor. The distributor agreed to pay $400,000 for the furniture. The distributor isn't required to pay for the furniture until it sells it to a customer. The distributor is also allowed to return up to 75% of the furniture at no cost. Sturdy recognized the revenue from this sale in the third quarter.

How would you recommend the Sturdy company account for this?

Reference no: EM133433760

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