2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash rebate on specific CDs. Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program.
2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash rebate on specific CDs. Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash rebate on specific CDs. Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed.
Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000.
Required:
Prepare appropriate
Transcribed Image Text:2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash
rebate on specific CDs. Customers must mail in a proof of purchase seal from
the package plus the cash register receipt to receive the rebate. Experience
suggests that 80% of the rebates will be claimed.
Twenty thousand of the CDs were sold in the current year. Total rebates to
customers in the current year amounted to P500,000.
Required:
Prepare appropriate journal entries for the current year to recognize the cash
rebate program.
Transcribed Image Text:2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash
rebate on specific CDs. Customers must mail in a proof of purchase seal from
the package plus the cash register receipt to receive the rebate. Experience
suggests that 80% of the rebates will be claimed.
Twenty thousand of the CDs were sold in the current year. Total rebates to
customers in the current year amounted to P500,000.
Required:
Prepare appropriate journal entries for the current year to recognize the cash
rebate program.
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