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On June 1, 2021, Choice Inc. sold 110 unit of its products for $100 each to Focus Inc.. Choice Inc. allows Focus Inc. to return
On June 1, 2021, Choice Inc. sold 110 unit of its products for \$100 each to Focus Inc.. Choice Inc. allows Focus Inc. to return any unused product within 2 months from the date of purchase and receive a full refund. The cost of each product is $79. Choice Inc. estimated that, within 2 months from the date of purchase, there is a 60% chance that 28 units will be returned, a 18% chance that 22 units will be returned, a 10% chance that 10 units will be returned, and a 12% chance that no returns will be made. The returned products are expected to be resold at a profit. How much revenue should Choice Inc. recognize at time of sale? Choice Inc. follows IFRS. a. $11,000 b. $8,924 c. $6,600 d. $9,320 e. $8,824
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