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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (4130)	10/3/1999 2:52:00 PM
From: DanZ	Read Replies (1) \| Respond to of 10293

<Are you saying the return policy is based on return of product beyond shelf life?> I don't really understand what you are asking. I can think of three reasons why a retailer would return Zicam (or any product). 1. It is damaged. 2. It is expired. 3. The retailer discontinues it. I told you about the reserves because I thought it related to your original question. A certain percentage of goods can be returned without a resulting charge against revenue. The reason is because GumTech assumes that a certain percentage of goods will be returned whether they are returned or not. The reserve amount is deducted from sales before they ever appear on the income statement. It's as if these sales never occurred. Perhaps I could address your question better if you made it clear why you are asking about the return policy. Most companies accept returns from retailers. It is part of the cost of doing business and that's why GumTech has a reserve account.