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Can you explain this to me For Question Number 63 to 65: In 2020, LIRO Co uses a wholesale network to supply its products to

Can you explain this to me

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For Question Number 63 to 65: In 2020, LIRO Co uses a wholesale network to supply its products to end-customers, During 2023, LIRO Co sells 100 watches to a retailer for P50 each. The cost of each watch is P10. LIRO Co estimates, based on the expected value method, that 6% of watches sold will be returned, and it is highly probable that returns will not be higher than 6%. The Company has no further obligations after transferring control of the watches. Retailer has a contractual right to return the watches for a full refund for a contractually defined period. 63. What is the amount of revenue to be presented in Income Statement for the year 2023? a. 0 b. 5,300 c. 5,000 d. 700 64. What is the amount of cost of sales to be presented in Income Statement for the year 2023? a. 940 b. 1,000 C. 1,060 d. 0 65. What is the amount of refund obligation to be presented in Statement of Financial Position as of December 31, 2023? a. 60 b. 300 C. 600

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