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The following are three independent situations. 1. Sandhill Rewards Inc. provides rewards services to licensees. Sandhill records service revenue related to rewards (granted as reward vouchers, which can be redeemed at a variety of retailers) and recognizes the cost of redemptions in the year vouchers are sold to licensees. Sandhill's past experience indicates that only 80% of the vouchers sold to licensees will be redeemed. Sandhill's liability for stamp redemptions was $12,693,900 at December 31, 2024. Additional information for 2025 is as follows. Service revenue from vouchers sold to licensees Cost of redemptions (vouchers sold prior to 1/1/25) $8,614,200 If all the vouchers sold in 2025 were presented for redemption in 2026, the redemption cost would be $5,173,300. What amount should Sandhill report as a liability for voucher redemptions at December 31, 2025? Liability for stamp redemptions at December 31, 2025 $ Consumer expiration date Total face amount of coupons issued Total…

A company separately sells home security equipment and 12 months of system monitoring service for $120 and $240, respectively. The company sells an equipment/monitoring bundle on January 1 for a total price of $270. The monitoring service begins immediately after the equipment is delivered and installed on January 1.   Required: Determine the dollars of revenue that should be allocated to the equipment for each bundled sale. Determine the dollars of revenue that should be allocated to the service for each bundled sale. Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the income statement for the period January 1–31.

Able Company enters into a contract with a customer to provide them with an accounts receivable program. Able will also provide installation services as part of the contract. Able will make sure that this program will be installed so that it will be customized and be able to integrate with the company's other program modules. What is the number of performance obligations for this contract?

Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership Inc. markets and sells the vehicles to retail customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone selling price of a vehicle is $30,000 and the standalone selling price for the annual maintenance contract is $400. During October 2020, Value Dealership Inc. sold 30 vehicles for $30,250 per vehicle, each with a free annual maintenance contract. When answering the following questions: Round each allocated transaction price to the nearest dollar. If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). a. Ignoring the cost entries, record the journal entry in October 2020 for Value Dealership’s sale of vehicles with the associated maintenance contracts to customers.…

Value Dealership Inc. markets and sells vehicles to retail customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone selling price of a vehicle is $18,000 and the standalone selling price for the annual maintenance contract is $367. During October, Value Dealership Inc. sold 18 vehicles for $18,150 per vehicle, each with a free annual maintenance contract. •Note: Carry all decimals in calculations; round the final answer to the nearest dollar. •Note: If a line of the journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answer blank (zero). a. Determine how the transaction price should be allocated among the performance obligation(s) and record the journal entry in October for Value Dealership's sale of 18 vehicles with the associated maintenance contracts to customers. Ignore the cost entry. Performance Obligations Transaction…

SYSTEM DOCUMENTATION- REVENUE CYCLE (MANUALAND COMPUTER PROCESSES)The following describes the revenue cycle procedures for a hypotheticalcompany. The sales department clerk receives hard-copy customer orders andmanually prepares a six-part hard-copy sales order. Copies of the salesorder are distributed to various departments as follows: Copies 1, 2, and3 go to the shipping department, and Copies 4, 5, and 6 are sent to thebilling department where they are temporarily filed by the billing clerk. Upon receipt of the sales order copies, the shipping clerk picks the goodsfrom the warehouse shelves and ships them to the customer. Theclerk sends Copy 1 of the sales order along with the goods to thecustomer. Copy 2 is sent to the billing department, and Copy 3 is filed inthe shipping department. When the billing clerk receives Copy 2 from the warehouse, she pulls theother copies from the temporary file and completes the documents byadding prices, taxes, and freight charges. Then, using the…

Rahe Corp. sold a customer service contract with a price of $20,000 to Peterson Warehousing. Rahe Corp. offered terms of 2/10, n/30 and expects Peterson to pay within the discount period. Required: Prepare the journal entry to record the sale using the net method. Prepare the journal entry assuming the payment is made within 10 days (within the discount period).

With the goal of attracting as much customers as possible in the CALABARZON, Jhet Company engaged in a customer satisfaction program and marketing strategy for two of their major lines of products: (1) electrical appliances and (2) household and office furniture. All branches in the region are participating in the company’s promotions. In the customer satisfaction program, Jhet provides one-year warranty replacement of parts and labor of the electrical appliances sold. Based on past experience, the estimated warranty cost is 3% of sales. During 2021, total sales of electrical appliances was ₱7,200,000. Replacement parts and labor for warranty work totaled ₱184,000 during 2021. In the company’s marketing strategy for the household and office furniture section, customers are given a coupon for every ₱1,000 spent on these items. Customers may exchange 10 coupons plus ₱500 for a “hot and cold” water dispenser. Each water dispenser cost ₱1,200 and estimates that 40% of the coupons given to…

Transactions for you to complete 1) Create A Supplier Account. Supplier: Ink Inspector Address: Oakville, ON Terms: N30 Exp acct: 5250 Licenses Tax Code: HI (HST @ 13%, included) 2) Create A Customer Account. Client: Noya Modeling Agency Terms: 1/15, N30 Address: Hamilton, ON Tax Code: H (HST @13%) Rev acct: 4050 Rev from services Credit Limit: $10,000 Change the Session Date to April 8, 2022 3) Enter the following transactions into Sage. Purchase Invoice #GB-806 Dated April 4 from Germ Busters; $3,750, plus HST for new sterilization equipment (add freight charges of $225 + HST). (Pay attention to the words! This is not sterilized needles; this is for sterilization equipment. You need to change the account number.) Sales Invoice Dated April 4 to Noya Modeling Agency $8,000, plus HST for laser treatments to remove tattoos on new models hired in the agency. Credit Card Sales Invoice Dated April 4 to One-Time walk-in clients. Sales Summary: $1,420, plus HST for laser treatments. Payment…

Describe the revenue recognition policy that the company should follow: Comfort Furniture sells household furniture. Customers can pay for the furniture at the time of delivery or they can wait one year to make payment. In the latter case, the customer must pay for the retail price of the furniture plus an additional 16 percent. If the customer decides to pay after one year, should Comfort Furniture report the additional 16 percent as part of the revenue from selling the furniture or should it be reported separately? Assume that the ability to collect the receivable is not an issue.

Ginger Ltd is marketing a ‘surfing bundle’ in which, for $2200, it provides customers with a surfboard(which retails separately for $1700), a wetsuit (which retails separately for $500) and five lessons(which retail separately for $400). You are required to determine:a) Whether separate performance obligations exist, and to explain why you made thisjudgement.b) How much of the transaction price to allocate to each performance obligation?

1.Please Complete Solution With Details 2.Final Answer Clearly Mentioned 3.Do not give solution in image format

can you please explain how to recognize the revenue if you have the information below using IFRS The A company sells copy machine at a sales price of JPY1,500,000 per unit. The salesprice includes delivery and installation. It also gives a maintenance service (6 years) in which atechnician checks to make sure that the machine is working properly with a price of JPY500,000(one-time prepayment).The A company has started a promotion campaign in which the maintenance service (6years) will be offered for free to a client that buys a copy machine of JPY 1,728,000.The A company has made a contract to sell a copy machine with the maintenance service(6 years) to B company by JPY 1,728,000.

Jewel-Osco evaluated three different pay-by-touch systems that identify a customer by a finger scan and automatically deduct the amount of the bill directly from their checking account. The revenue alternatives were ranked according to increasing initial investment and identified as alternatives A, B, and C. Comparison i*, % Δi*, % A to DN 23.4 B to DN 8.1 C to DN 16.6 B vs. A −5.1 C vs. A 12.0 C vs. B 83.9 Based on the alternative ROR values (i*), the incremental ROR values (Δi*), and the company’s MARR of 16% per year, the alternative to select is: (a) A (b) B (c) C (d) DN

Q3. An entity sells 100 products for $100 each. Sales are made for cash, rather than on credit terms. The entity’s customary business practice is to allow a customer to return any unused product within 30 days and receive a full refund. The cost of each product is $60. To determine the transaction price, the entity decides that the approach that is most predictive of the amount of consideration to which the entity will be entitled is the most likely amount. Using the most likely amount, the entity estimates that three products will be returned. The entity’s experience is predictive of the amount of consideration to which the entity will be entitled. The entity estimates that the costs of recovering the products will be immaterial and expects that the returned products can be resold at a profit.REQUIREDProvide the accounting entries to record the sale, and the subsequent return of the assets, assuming that the returns occur in accordance with expectations.

CycleWorld sells motorcycles and also provides operating training and license testing. Training is $75 per hour, and testing is $125 per hour. How should it show license testing in its Service Item? Select an answer: as a separate category of Service Revenue as a separate level under Motorcycle Sales as a separate level under Service Revenue

Prairie Manufacturing has four possible​ suppliers, all of which offer different credit terms. Except for the differences in credit​ terms, their products and services are virtually identical. The credit terms offered by these suppliers are shown in the following​ table: LOADING... (Note​: Assume a​ 365-day year.)   Supplier     Credit terms       J          2/15 net 40 EOM      K         2/20 net 80 EOM      L          1/10 net 60 EOM      M         3/10 net 100 EOM   a. Calculate the approximate cost of giving up the cash discount from each supplier.   b. If the firm needs​ short-term funds, which are currently available from its commercial bank at 10​%, and if each of the suppliers is viewed separately​, ​which, if​ any, of the​ suppliers' cash discounts should the firm give​ up?     c. Now assume that the firm could stretch by 30 days its accounts payable​ (net period​ only) from supplier M. What​ impact, if​ any, would that have on your answer in part b relative to this​…