TriCo enters into a contract to sell merchandise, n$/30.$ TriCo's management uses the expected value method to estimate returns and has the following information for this contract:

Selling price $$9,000$

Cost $4,500$

The company also provided the following return estimates from similar contracts:

Outcome Estimated Returns Estimated Occurrences

$115\%45\%$

$110\%55\%$

The performance obligation was completed on September $20.$ a$.$ Calculate the transaction price for this sale assuming the company follows IFRS and uses the expected value method to estimate returns.

Possible Outcome Estimated Returns Weighted

Probability Probability

a$.115\%45\%$ $$?$

$210\%55\%?$

b$.$ Prepare the journal entry to record the sale, ignoring any entries required for estimated inventory returns, cost of goods sold, and merchandise inventory. $($Due to minimal Excel rounding, the amounts may differ from the text solution.$)$

b$.$

Accounts Receivable $?$

Sales $?$

Refund Liability $?$