Cullumber Treasures Company sells home furnishings. On February 1, Cullumber Treasures entered into a contract with Simon Development Ltd. for home furnishings with a selling price of $28,000 and terms of n/30. The goods cost Cullumber $19,600. Cullumber Treasures has a stated return policy of 20 days from the date of sale and based on past transactions, management determines that returns are 5% of sales 65% of the time and 10% of sales 35% of the time. The goods were delivered to Simon Development on February 15. Cullumber Treasures uses the expected value method to estimate returns and the contract- based approach for revenue recognition.