Concord Company offers a set of building blocks to customers who send in 3 UPC codes from Concord cereal, along with 50¢. Theblock sets cost Concord $1.00 each to purchase and 60¢ each to mail to customers. During 2025, Concord sold 960,000 boxes ofcereal. The company expects 30% of the UPC codes to be sent in. During 2025, 96,000 UPC codes were redeemed. Prepare Concord'sDecember 31, 2025, adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Creditaccount titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)Account Titles and ExplanationPremium ExpensePremium LlabilityDebit105600Credit105600

The objective of the question is to prepare an adjusting entry for Concord's company for the year…

Answered: Concord Company offers a set of…

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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Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $390,000. During 2021, Halifax sold merchandise on account for $12,400,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $368,000 in sales for credit, with $203,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. a) Record the year-end adjusting entry for estimated returns. b) Record the adjusting entry for the estimated return of merchandise to inventory. c) What is the amount of the year-end refund liability after the adjusting entry is recorded?
h
Brandin Grocers gives one loyalty point to its customers for every dollar spent in the store. The loyalty points will not expire. Customers can redeem these points and are eligible to receive a box of cookies if they redeem 100 points. Brandin Grocers purchase these cookie boxes from the baker @ $3 a box. Because the offer is so popular, 98 per cent of the customers redeem their loyalty points to get the box of cookies.In the month of December 20x1, the total sales recorded in the Store were $ 442,000. You are required to calculate the liability amount and provide the necessary entries.
Cold Stone, an ice cream store in central Illinois, sells several varieties of popular ice creams in its neighborhood villages. The following data pertains to the year 2023. The annual sales revenue of the store is $4 million. The annual cost of all the goods sold is $3 million. The beginning inventory on January 01 is $0.5 million. The ending inventory on December 31 is $0.3 million. The beginning accounts receivables on January 01 is $0.2 million. The ending accounts receivables on December 31 is $0.1 million. The beginning accounts payables on January 01 is $0.3 million. The ending accounts payables on December 31 is $0 million. 10. Compute the Cash-to-Cash cycle of Cold Stone.
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
Bavarian Bar and Grill opened for business in November 2021. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $7,600, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 90% of gift cards are redeemed within one year. Gift cards totaling $2,500 were presented for redemption during 2021 for meals having a total price of $2,900. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Sales taxes will be remitted in January.Required:1. Prepare the appropriate journal entries (in summary form) for the gift cards and meals sold during 2021 (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually).2. Determine the liability for gift cards to be reported on the December 31, 2021, balance sheet.3. What is the appropriate classification (current or…
Moon Co. sells food blenders. During 2019, Moon made 37,000 blenders at an average cost of $80. It sold out 25,000 food blenders at an average price of $130. Moon provides a 2-year warranty for each blender sold and estimates 9% of blenders will be returned for warranty with an estimated cost of $36 each. By the end of 2019, Moon has spent $44,000 servicing the warranty repairs. All the above transactions have been settled in cash. During 2019, Moon has 50 employees who work 5-day per week and get paid each other Friday. Salaries of $324,000 and payroll expense of $37,000 have been paid until December 22. Since the business grows quickly, Moon needs cash to expand. By the end of 2018, the Board of Directors authorized the management to issue 10-year bonds with a par value of $3,000,000, annual contract interest rate of 8% and semi-annual interest payments. Moon chose to use the straight-line method to amortize discount or premium on its bonds. On January 1, 2019, management…
Cullumber Company offers a set of building blocks to customers who send in 3 UPC codes from Cullumber cereal, along with 50¢. The block sets cost Cullumber $1.30 each to purchase and 70¢ each to mail to customers. During 2025, Cullumber sold 1,536,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2025, 153,600 UPC codes were redeemed. Prepare Cullumber's December 31, 2025, adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Premium Expense Premium Liability Debit 307,200 Credit 307,200

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