Aria Perfume, Incorporated, sold 3,910 boxes of white musk soap during January of 2024 at the price of $60 per box. The company offers a full refund to unsatisfied customers for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 1% of sales will be returned. How many performance obligations are there in each sale of a box of soap? How much revenue, sales returns, and net revenue sho Aria recognize in January? Answer is complete but not entirely correct. Number of performance obligations in the contract January revenue January sales returns January net revenue 3,910 $ 234,600 $ 2,346 $ 232,254
Aria Perfume, Incorporated, sold 3,910 boxes of white musk soap during January of 2024 at the price of $60 per box. The company offers a full refund to unsatisfied customers for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 1% of sales will be returned. How many performance obligations are there in each sale of a box of soap? How much revenue, sales returns, and net revenue sho Aria recognize in January? Answer is complete but not entirely correct. Number of performance obligations in the contract January revenue January sales returns January net revenue 3,910 $ 234,600 $ 2,346 $ 232,254
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Aria Perfume, Incorporated, sold 3,910 boxes of white musk soap during January of 2024 at the price of $60 per box. The company
offers a full refund to unsatisfied customers for any product returned within 30 days from the date of purchase. Based on historical
experience, Aria expects that 1% of sales will be returned.
How many performance obligations are there in each sale of a box of soap? How much revenue, sales returns, and net revenue should
Aria recognize in January?
Answer is complete but not entirely correct.
3,910 X
Number of performance obligations in the contract
January revenue
January sales returns i
January net revenue
$ 234,600
$
$
2,346
232,254
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