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13. Mimi Co. sells gift certificates that expire one year after issuance. Information on gift certificates is shown below: Gift card liability, Jan. 1, 20x1 Gift certificates sold during 20x1 year gift certificates redeemed in 20x1 Gift certificates sold and redeemed in 20x1 P120,000 1,000,000 112,000 760,000 Prior Mimi's past experience indicates that 5% of gift certificates sold are never redeemed. Under PFRS 15, what amounts of (1) total revenue and (2) liability should be reported in Mimi Co.'s 20xl financial statements? a. 760,000; 198,000 b. 872,000; 190,000 c. 920,000; 200,000 d. 930,000; 208,000

13. Mimi Co. sells gift certificates that expire one year after issuance. Information on gift certificates is shown below: Gift card liability, Jan. 1, 20x1 Gift certificates sold during 20x1 year gift certificates redeemed in 20x1 Gift certificates sold and redeemed in 20x1 P120,000 1,000,000 112,000 760,000 Prior Mimi's past experience indicates that 5% of gift certificates sold are never redeemed. Under PFRS 15, what amounts of (1) total revenue and (2) liability should be reported in Mimi Co.'s 20xl financial statements? a. 760,000; 198,000 b. 872,000; 190,000 c. 920,000; 200,000 d. 930,000; 208,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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13. Mimi Co. sells gift certificates that expire one year after issuance. Information on gift certificates is shown below: Gift card liability, Jan. 1, 20x1 Gift certificates sold during 20x1 P120,000 1,000,000 112,000 Prior year gift certificates redeemed in 20x1 Gift certificates sold and redeemed in 20x1 760,000 Mimi's past experience indicates that 5% of gift certificates sold are never redeemed. Under PFRS 15, what amounts of (1) total revenue and (2) liability should be reported in Mimi Co.'s 20x1 financial statements? a. 760,000; 198,000 b. 872,000; 190,000 c. 920,000; 200,000 d. 930,000; 208,000
Transcribed Image Text:13. Mimi Co. sells gift certificates that expire one year after issuance. Information on gift certificates is shown below: Gift card liability, Jan. 1, 20x1 Gift certificates sold during 20x1 P120,000 1,000,000 112,000 Prior year gift certificates redeemed in 20x1 Gift certificates sold and redeemed in 20x1 760,000 Mimi's past experience indicates that 5% of gift certificates sold are never redeemed. Under PFRS 15, what amounts of (1) total revenue and (2) liability should be reported in Mimi Co.'s 20x1 financial statements? a. 760,000; 198,000 b. 872,000; 190,000 c. 920,000; 200,000 d. 930,000; 208,000
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