Calculate the transaction price

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Problem - Monty Company enters into a contract to sell $9,400 of merchandise, n/30. The cost of the merchandise to Monty is $4,200. Monty's management uses the expected value method to estimate returns and has the following information from similar contracts: 45% of the time, returns are 15% of sales and 55% of the time, returns are 10% of sales. The performance obligation was completed on September 20. Calculate the transaction price assuming the company follows IFRS AND uses the expected value method to estimate returns.

Reference no: EM132813038

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