Companies have two choices for accounting for cash discounts, the gross method and net method. Net income will be the same under either method.

		True
		False

When estimating variable consideration, companies can use the expected value method or most likely amount method. Companies may pick the method that results in the lowest administrative cost.

		True
		False

Collection of all of the consideration must be certain for a contract to be valid.

		True
		False

A valid contract can be written, oral or implied.

		True
		False

Folklore Inc. sells merchandise for $50,000 for the month of June. The company estimates returns to be equal to 2.5% of sales. Actual returns for the month for items sold in June totaled $600. What is the correct balance in Refund Liability on June 30 based on these transactions?

		$750
		$1,250
		$650
		$500