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Question - Equate Inc. sells products with a cost of $25,000 during the year to customer for $55,000. It is Equate's policy to accept returns up to 60 days after the date of purchase. Equate estimates that there is a 60% probability that returns will be 3% of sales and a 40% probability that returns will be 2.5% of sales. What is the transaction price under a) expected value method b) most likely amount method?
A: $53,460 B: $53,350
A: $53,350 B: $53,460
A: $53,460 B: $54,450
A: $54,450 B: $53,460
A: $53,350 B: $53,350
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