MAYUMI Co. sold 50,000 units at P 225 per unit during May of this year. The cost per unit is P150. The entity granted the customers right to return within 90 days if not satisfied and will receive either a full refund if cash was already paid or a full credit for the amount owed to the entity. It is estimated that 7% of the units sold will be returned within the 90-day period. The entity used the perpetual method. What amount of sales revenue should be reported for the month of May?

MAYUMI Co. sold 50,000 units at P 225 per unit during May of this year. The cost per unit is P150. The entity granted the customers right to return within 90 days if not satisfied and will receive either a full refund if cash was already paid or a full credit for the amount owed to the entity. It is estimated that 7% of the units sold will be returned within the 90-day period. The entity used the perpetual method. What amount of sales revenue should be reported for the month of May?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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