Animals recall things, of course. I'm of the opinion that most mammals not only have good memories, but that they combine these with emotions and a form of reason that parallels our own abilities to do the same sort of thing.
For instance, we picked up Lilly from the breeder when she was just a few weeks old. She was quite the kitten when we brought her home. That night, Carole took along a plush blankie to wrap her in for the trip home. Lilly slept on that blanket for her first few nights with us.
She remembers that. In fact, even today, her favorite place to nap is on that blanket. She has quite a choice of places to relax, but wherever that blanket lies...that's her first choice as a spot to curl up and rest. It means something to her. It's familiar and comforting and represents security and comfort to Lilly.