Carla Vista Company sells 270 units of its products for $20 each to Brian Inc. for cash. Carla Vista allows Brian to return any unused product within 30 days and receive a full refund. The cost of each product is $12. To determine the transaction price, Carla Vista decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Carla Vista estimates that (1) 9 products will be returned and (2) the returned products are expected to be resold at a profit. (a) Indicate the amount of net sales. Net sales $ (b) Indicate the amount of estimated liability for refunds. Liability for refunds $ (c) Indicate the amount of cost of goods sold that Carla Vista should report in its financial statements (assume that none of the products have been returned at the financial statement date). Cost of goods sold $

Carla Vista Company sells 270 units of its products for $20 each to Brian Inc. for cash. Carla Vista allows Brian to return any unused product within 30 days and receive a full refund. The cost of each product is $12. To determine the transaction price, Carfa Vista decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Carla Vista estimates that (1) 9 products will be returned and (2) the retumed products are expected to be resold at a profit. (a) Indicate the amount of net sales. Net sales $ (b) Indicate the amount of estimated liability for refunds. Liability for refunds $ (c) Indicate the amount of cost of goods sold that Carla Vista should report in its financial statements (assume that none of the products have been returned at the financial statement date). Cost of goods sold $