Problem 3 (20 points total, 2 points each unless otherwise indicated)

Provide answers to the following questions related to the accounting for revenue recognition:

1. Ally Co. sold goods to Jackson Inc. for $50,000 on December 30, 2019. According to the terms of the sale, Jackson Inc.s obligation to pay Ally Co. for the goods is contingent upon Jackson Inc. reselling the goods to its own customers. Jackson Inc. also has an unlimited right of return. Jacksons records indicate that they typically resell 55% of the goods and return the other 45%. What amount of revenue related to this transaction should Ally Co. record on its December 31, 2019 income statement?