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Question - On Dec. 1, 2022, Aglubo Corp. sold 100,000 units at P50 per unit or P5,000,000. The cost for each unit is P35. Aglubo Corp. granted the customers a right to return within 30 days if not satisfied and will receive either a full refund if cash was already paid or a full credit for the amount owed to the entity.
Aglubo Corp. estimated that 3% of the units sold or 3,000 units will be returned within the 30-day period. Aglubo Corp. used the perpetual method.
Required - What amount of revenue should be recognized by Aglubo Corp. on December 1, 2022?
a. P5,000,000
b. P3,500,000
c. P4,850,000
d. P150,000
e. P0
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