U.S. pharmaceuticals giant Merck recorded about $12.4 billion in revenues from a division during the past three years that it did not collect, the Wall Street Journal Europe reported Monday. The information, disclosed in Securities and Exchange Commission filings, showed that Merck's Medco pharmacy-benefits division included as part of its revenue the co-payments collected by pharmacies from patients, even though it doesn't receive those funds, the Journal reported. Merck claims its revenue recognition policy adhers to Generally Accepted Accounting Principles (GAAP) because it subtracts the exact amount of the co-payment income as an expense. The disclosure, part of required filings for Merck's preparations to take 20% of the Medco business public, is the latest in a series of questionable accounting practices among large American firms. //MarketNews