Sheridan Treasures Company sells home furnishings. On February $1,$ Sheridan Teasures entered into a contract with Simon Development Ltd$.$ for home furnishings with a selling price of $$44,000$ and terms of n$/30.$ The goods cost Sheridan $$30,800.$ Sheridan 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 tome and $10\%$ of sales $35\%$ of the time. The goods were delivered to Simon Development on February $15.$ Sheridan Treasures uses the expected value method to estimate returns and the contract$-$based approach for revenue recognition.