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Question - What is the transaction price for the following scenario:
Scenario A: Tula Inc. sells $20,000 of inventory for $45,000 during the year. Tula estimates returns to be 4% of sales.
Scenario B: Universe enters into a contract with a new customer for $12,000. As part of this agreement, Universe agrees to pay $4,000 to the customer to compensate the customer for up-front processing costs.
A: $43,200 B: $8,000
A: $43,200 B: $12,000
A: $45,000 B: $8,000
A: $45,000 B: $12,000
None of the above
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