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Aria Perfume, Inc., sold 2,520 boxes of white musk soap during January of 2021 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.
Problem 1: How many performance obligations are there in each sale of a box of soap? How much revenue should Aria recognize in January?
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