PRODUCT RETURNS AND ALLOWANCES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| PRODUCT RETURNS AND ALLOWANCES |
NOTE 5 – PRODUCT RETURNS AND ALLOWANCES The Company recorded an allowance for estimated customer returns of $0 and $609,770 for the years ended December 31, 2016 and 2015, respectively. The allowance was based on multiple criteria, including type of store, history of returns, length of time since product was sold to the customer and inventory remaining with customer (if known). Use of these criteria resulted in different percentages being applied to different customers. The allowance will be evaluated and adjusted accordingly on a quarterly basis.
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