c. Journalize the liability (if any) on February 28 for the coupons Seifert Stores printed in February. Assume that Seifert Stores sold $25,000,000 of merchandise in February, which generated 12,500,000 printed sales receipts. The merchandise sold cost $16,500,000. Siefert Stores estimates that 15% of the $2-off coupons printed February will be redeemed before they expire April 30. If an amount box does not require an entry, leave it blank. Date Account Debit Credit Feb. 28
c. Journalize the liability (if any) on February 28 for the coupons Seifert Stores printed in February. Assume that Seifert Stores sold $25,000,000 of merchandise in February, which generated 12,500,000 printed sales receipts. The merchandise sold cost $16,500,000. Siefert Stores estimates that 15% of the $2-off coupons printed February will be redeemed before they expire April 30. If an amount box does not require an entry, leave it blank. Date Account Debit Credit Feb. 28
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:c. Journalize the liability (if any) on February 28 for the coupons Seifert Stores printed in February. Assume that Seifert Stores sold $25,000,000 of merchandise in
February, which generated 12,500,000 printed sales receipts. The merchandise sold cost $16,500,000. Siefert Stores estimates that 15% of the $2-off coupons printed
February will be redeemed before they expire April 30. If an amount box does not require an entry, leave it blank.
Date
Account
Debit
Credit
Feb. 28
88
Transcribed Image Text:Sales promotions
At the bottom of all its February sales receipts, Seifert Stores Inc. printed $2-off coupons. The coupons may be redeemed March 1-April 30. Seifert Stores Inc. accepts
only cash, MasterCard, or VISA. During February, Seifert Stores completed the following selected transactions:
Feb. 6. Sold merchandise to Marci Andrews with a list price of $175 that cost Seifert Stores Inc. $80. Marci presented a $5-off coupon, which she clipped out of the local
newspaper. Marci used her VISA card for the purchase.
18. Sold merchandise to Chris Johnson with a list price of $50 that cost Selfert Stores $24. The bottom of Chris Johnson's cash receipt includes the $2-off coupon.
Chris paid cash for his purchase.
a. Journalize the February 6 sale to Marci Andrews: If an amount box does not require an entry, leave it blank
Account
Debit
Credit
Date
Feb. 6
Feb. 6
b. Journalize the February 18 sale to Chris Johnson. If an amount box does not require an entry, leave it blank.
Account
Debit Credit
Date
Feb. 18.
Feb. 18
0000
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