Sarasota Company sells 321 units of its products for $18 each to Logan Inc. for cash. Sarasota allows Logan to return any unused product within 30 days and receive a full refund. The cost of each product is $13. To determine the transaction price, Sarasota 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, Sarasota estimates that (1) 10 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 Sarasota should report in its financial statements (assume that none of the products have been returned at the financial statement date).

Cost of Goods Sold

Ayayai Company sells goods to Pina Company during 2020. It offers Pina the following rebates based on total sales to Pina. If total sales to Pina are 10,500 units, it will grant a rebate of 2%. If it sells up to 21,200 units, it will grant a rebate of 5%. If it sells up to 30,800 units, it will grant a rebate of 6%. In the first quarter of the year, Ayayai sells 10,600 units to Pina at a sales price of $106,000. Ayayai, based on past experience, has sold over 37,600 units to Pina, and these sales normally take place in the third quarter of the year. What amount of revenue should Ayayai report for the sale of the 10,600 units in the first quarter of the year.

Revenue