On July 15, 2017 Matrix Corp sells 20,000 snoe shovels to a distributor for $15 per shovel. The distributor pays the amount on July 15, 2017, and has the right to returnany of the snow shovels for any reason within 180 days for a full refund. Matrix uses the expected value method to estimate that 8% of the snow shovels will be returned and it is probable that no more than 8% of the shovels will be returned. How much sales revenue should Matrix recognize on July 15, 2017 for this sale?
On July 15, 2017 Matrix Corp sells 20,000 snoe shovels to a distributor for $15 per shovel. The distributor pays the amount on July 15, 2017, and has the right to returnany of the snow shovels for any reason within 180 days for a full refund. Matrix uses the expected value method to estimate that 8% of the snow shovels will be returned and it is probable that no more than 8% of the shovels will be returned. How much sales revenue should Matrix recognize on July 15, 2017 for this sale?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 15, 2017 Matrix Corp sells 20,000 snoe shovels to a distributor for $15 per shovel. The distributor pays the amount on July 15, 2017, and has the right to returnany of the snow shovels for any reason within 180 days for a full refund. Matrix uses the expected value method to estimate that 8% of the snow shovels will be returned and it is probable that no more than 8% of the shovels will be returned. How much sales revenue should Matrix recognize on July 15, 2017 for this sale?
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