A distributor sells jewelry to a retail chain with the stipulation that 30% of the jewelry can be returned within six months. Actual returns have averaged 20% in each of the last 10 years. The distributor sells 14,000 items to retailers on account in January of 2020. Jewelry was sold to the distributor for $8 per item.

a. Determine the transaction price for the sale of jewelry by the distributor for January of 2020.

b. Determine the balance in Refund Liability on January 31, 2020, if the company had actual returns of $6,300 in January 2020.