Replies to post #235880 on Hannover House Inc (HHSE)

[Anvil]

Also, once product is returned from Wal-Mart, an adjustment is made to cost of goods sold, and the product is put back into inventory. If they turn around a resell that product to someone else, a new sale is recorded.

On the Netflix deals, if there are any, that payout over a period of a number of years. Those sales, if recorded as sales, should be classified as long term receivables instead of lumping them in the short term receivables.

But again, HHSE has no accounting acumen. Heck they don't even expense and accrue interest due on the numerous debts and loans they have.

[Myth]

Please show proof of this...

2. Other merchants that sell to Wal-Mart, etc. on a consignment basis, recognize sales once the product is shipped. The sale is recorded and a reserve against A/R is set up which is an estimate of the how much is typically returned. The actual returns during a quarter and then deducted from gross revenue on the income statement.