Aria perfume, inc., sold 2,520 boxes of white musk soap during january of 2018 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 4% of sales will be returned. how many performance obligations are there in each sale of a box of soap? how much revenue should aria recognize in january?

One performance obligation

Revenue -  $145,152

Explanation:

There is only one performance obligation is there in each sale of a box of soap if the customer is not fully satisfied with its products so he is eligible to take a full refund.

The computation of the revenue recognized is shown below:

= Number of boxes sold × price per box - sales returned percentage × sales revenue

= 2,520 boxes × $60 - 4% × 2,520 boxes × $60

= $151,200 - $151,200 × 4%

= $151,200 - $6,048

= $145,152

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