Answered: At December 31, 2020, Hersheys Company…

At December 31, 2020, Hersheys Company had 1,000 gift certificates outstanding, which had been sold to customers during 2020 for P720. Laser operates on a gross margin of 60%.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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Question

B. At December 31, 2020, Hersheys Company had 1,000 gift certificates outstanding, which had been sold to
customers during 2020 for P720. Laser operates on a gross margin of 60%.

2. How much revenue pertaining to the gift certificates should be deferred at December 31, 2020?

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