Cullumber Bakery began selling gift cards in 2025. Based on industry norms, they expect that 40% of the gift cards will not redeemed. In 2025, the bakery sold gift cards with a value of $3200. During that period, gift cards with a value of $800 wer redeemed. The amount of revenue that Cullumber will recognize in 2025 with regard to the gift cards is $1333 $800 $3200 $1120

Cullumber Bakery began selling gift cards in 2025. Based on industry norms, they expect that 40% of the gift cards will not redeemed. In 2025, the bakery sold gift cards with a value of $3200. During that period, gift cards with a value of $800 wer redeemed. The amount of revenue that Cullumber will recognize in 2025 with regard to the gift cards is $1333 $800 $3200 $1120

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EA: Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning...

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Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
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Bezamon Shoes Shop has a customer loyalty program in which it issues points to customers for every cash purchase that can be applied to future purchases. For every dollar spent, a customer receives one point. Each point is worth three cents. There is no expiry date on the points. Bezamon estimates that 30% of the points issued will eventually be redeemed. The program was started in 2020. During 2020, 8oo,000 points were issued. Sales for 2020 were $400,000. In 2021, 1.3 million points were issued. Total sales for 2021 were $500,000. Bezamon has a December 31 year end. Required: 1. What is the stand-alone value of the points issued in 2020? In 2021? 2. Prepare the journal entries to record the sales for 2020 and 2021. 3. When the points are redeemed, how is this accounted for? What is the impact of the point redemptions on profit and cash flow?
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Please show your solution in good accounting form In 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each box contains one coupon, which entitles the customer to a premium that costs the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the customer to receive a premium. SUGA estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional information disclosed that ₱10 per premium is incurred for storage and distribution. a. Compute for the liability for the unredeemed coupons. b. Compute for the premium expense for the year.
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A home gods retailer offers a sales incentive program where customers receive credit towards future purchases based on the dollar amount of their purchases today. For every $10 spent, a customer receives a $1 credit to use in the next 30 days. Based upon historical trends, the firm estimates that 35% of the credits will be redeemed. In the next month, consistent with the firm’s estimate, 35% of the credits were redeemed. The entry recorded to account for the redemption of these credits (excluding the effect of the costs of sales entry): A.) Increases Liabilities, Increases Stockholders’ Equity B.) Increases Liabilities, Reduces Stockholders’ Equity C.) Reduces Liabilities, Reduces Stockholders’ Equity D.) Reduces Liabilities, Increases Stockholders’ Equity C.) No entry needed
Lastly, can you show me how to do this one? 22. In 2018, XYZ, Inc. sold 2,000 beds for $50 each. The beds carry a 2-year warranty for repairs. XYZ estimates that repair costs will average 3% of the total selling price. What amount would be recorded in the warranty liability account as a result of selling the beds during 2018? Assets = Liabilities + Stockholders’ Equity Revenues – Expenses = Net Income
During 2021, Truffle Company sold 500,000 boxes of hotcakes under a new sales promotional program. Each box contains one coupon, which when submitted with P16, entitles the customer to a baking pan. Truffle pays P20 per pan and P2 for handling and shipping. Truffle estimate that 80% of the coupons will be redeemed, even though only 300,000 coupons had been processed during 2021. What amount should Truffle report as a liability for unredeemed coupons at December 31, 2021?
abc company offers a cash rebate of P1 on each P4 package of light bulbs sold during 2022. Historically, 10% of customers mail in the rebate form. During 2022, 4,000,000 packages of light bulbs are sold, and 140,000 P1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2022 financial statements dated December 31? P140,000; P260,000 P100,000; P40,000 P400,000; P260,000 P260,000; P260,000
During 2020, Day Company sold 500,000 boxes of cake mix under a new sales promotional program. Each box contained one coupon, which entitled the customer to a baking pan upon remittance of P40. The entity paid P50 per pan and P5 for handling and shipping. The entity estimated that 80% of the coupons will be redeemed, even though only P300,000 coupons had been processed during 2020. 1. What amount should be reported as premium expense for P2020? 2. What amount should be reported as liability for unredeemed coupons on December 31, 2020?