Problem 2-13 IFRS)Arianne Company, a grocery retailer, operates a customerloyalty program. The entity grants program members loyaltypoints when they spendspecified amount ongroceries.Program members can redeem the points for groceries. Thepoints have no expiry date.During 2022, the sales amounted to P7,000,000 based onstand-alone selling price. During 2022, the entity granted 10,000points. But management expected that only 80% or 8,000 pointswill be redeemed. The stand alone selling price of each loyaltypoint was estimated at P100.On December 31, 2022, 4,800 points have been redeemed. In2023, management revised its expectations and now expectedthat 90% or 9,000 points will be redeemed altogether. During2023, the entity redeemed 2,400 points.Required:Prepare journal entries for 2022 and 2023.Problem 2-14 (IFRS)Erika Company operates a customer loyalty program. Theentity grants loyalty points for goods purchased. The loyaltypoints can be used by the customers in exchange for goods ofthe entity. The points have no expiry date.During 2022, the entity issued 50,000 award credits andexpected that 80% of these award credits shall be redeemed.The stand-alone selling price of the award credits grantedis reliably measured at P1,000,000. In 2022, the entity soldgoods to customers for a total consideration of P7,000,000based on stand-alone selling price. The award creditsredeemed and the total award credits expected to beredeemed each year are:Redeemed15,0007,9502,55015,0002022202320242025Expected to be redeemed80%85%85%90%RequiredPrepare journal entries for 2022, 2023, 2024 and 2025.56ProIn asalecousoldpreThewilthePacPreCou1.2.PrPREESE ESSEBainforyeTHprTHyeWlia

ANSWER:- 2-13 JOURNAL ENTRIES FOR 2022:- DATE PARTICULARS REF. NO. DEBIT…

Arianne Con loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for groceries. The points have no expiry date. During 2022, the sales amounted to P7,000,000 based on stand-alone selling price. During 2022, the entity granted 10,000 points. But management expected that only 80% or 8,000 points will be redeemed. The stand alone selling price of each loyalty point was estimated at P100. On December 31, 2022, 4,800 points have been redeemed. In 2023, management revised its expectations and now expected that 90% or 9,000 points will be redeemed altogether. During 2023, the entity redeemed 2,400 points. Required: Prepare journal entries for 2022 and 2023.

Arianne Con loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for groceries. The points have no expiry date. During 2022, the sales amounted to P7,000,000 based on stand-alone selling price. During 2022, the entity granted 10,000 points. But management expected that only 80% or 8,000 points will be redeemed. The stand alone selling price of each loyalty point was estimated at P100. On December 31, 2022, 4,800 points have been redeemed. In 2023, management revised its expectations and now expected that 90% or 9,000 points will be redeemed altogether. During 2023, the entity redeemed 2,400 points. Required: Prepare journal entries for 2022 and 2023.

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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Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers earn one loyalty point for each dollar of goods purchased, but do not earn additional loyalty points for purchases that are made by redeeming loyalty points. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2024, the company redeemed 11,200 points and sold additional product of $140,000, so it recorded of revenue of $151, 200. The aggregate stand-alone selling price of the purchased products is $151,200. Eighty percent of sales were cash sales, and the remainder were credit sales.…
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Problem 2 Erika Company operates lovaity program. The entity grants loyalty points for goods purchased. The loyalty points van be used by costumer in exchange for goods of the entity. The points have no expiry date. During 2021, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeerned. The Total Stand-alone selling price of the award credits granted is reliably measured at P1, 00,000 in 2021, the entity sold goods to costumers for a total consideration of P7, 000,000 based on stand-alone selling price. « Th i The award credits redeemed and the total award credits expected to be redeerned each year: Redeemed Expected to be Redeemed 2021 15,000 7,950 2,550 15.000 B0% 2022 85% 85% 90% 2023 2024 1. What amount should be reported as revenue points for 20217 A. 328, 125 B. 875,000 C. 700,000 D. 175,000 2. What amount should be reported as revenue frorn points for 2022? A. 472, 500 В. 4А, 375 C. 415, 625 D. 236, 250 3. What amount shauld be…
At Dec. 31, 2019. H&M Co. had gift certificates outstanding, which had been sold to customers during 2019 for P 100 each H& M operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 10,000 outstanding gift certificates should be deferred at Dec. 31, 2019. * A.N one B.400,000 C.600,000 D.1,000,000
Kindly answer in good accounting form. Thank you!Chester Corporation established its Poblacion branch in 2019.Merchandise costing P120,000 is shipped to this branch. During the initialyear, the home office acquires an equipment for P80,000 to be carried inthe branch books, and the branch maintains physical possession and use.The equipment has a useful life of 4 years. The branch sells 60 percent ofthe inventory for P100,800 on account and subsequently collected half ofthe amount. The branch remits 80 percent in cash to the Home Office.What is the correct Home Office account balance on the records of thebranch?
choose the correct answer (make sure the answer is correct 100%) Fancy Fish Company offers a cash rebate of $0.25 on each $12 package of fish food sold during 2022. Historically, 10% of customers mail in the rebate form. During 2022, 5,000,000 packages are sold, and 150,000 $0.25 rebates are mailed to customers. What is the rebate expense and liability, respectively, reported in the company's 2022 financial statements? a. $37,500; $87,500 b. $125,000; $87,500 c. $125,000; $37,500 d. $125,000; $125,000
3. Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be Redeemed 2020 15,000 80% 2021 7,950 85% 2022 2,550 85% 2023 15,000 90% Required: Prepare journal entries from 2020 to 2023.
purchased, but do not earn additional loyalty points made by redeeming loyalty points. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2024, the company redeemed 11,400 points and sold additional product of $142,500, so it recorded of revenue of $153,900. The aggregate stand-alone selling price of the purchased products is $153,900. Seventy percent of sales were cash sales, and the remainder were credit sales. Required: 1. & 2. Prepare Supply Club's journal entry to record July and August sales. During August, customers redeem loyalty points on $68,400 of merchandise. Sixty-five percent of those sales were for cash, and the remainder were credit sales. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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