Accrued expenses and other current liabilities

12 Months Ended

Mar. 29, 2020

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities

Note 5. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:

	March 29, 2020		March 31, 2019
Returns Reserve	$	3,440,100	$	1,985,700
Other Accrued Expenses		804,300		666,700
Total Accrued Expenses	$	4,244,400	$	2,652,400

The amount of expected returns are recognized as a refund liability within the Accrued Expenses line item of the balance sheet. This liability represents the obligation to return customer consideration. The value of the expected goods returned by customers is now recognized as a return asset within the Prepaid expense and other current assets line item of the balance sheet. The return asset value is initially measured at the former carrying amount in inventory, less any expected costs to recover the goods. The Company expects products returned by customers to be in new and salable condition, as required by our standard terms and conditions, and therefore impairment of the return asset is unlikely. Changes to the return liability are recorded as revenue adjustments and changes to the inventory asset are recorded as cost of goods sold. As of March 29, 2020, the return asset and return liability amounts were $2.7 million and $3.4 million, respectively. As of March 31, 2019, the return asset and return liability amounts were $1.5 million and $2.0 million, respectively.