Problem 2-22 (IFRS)Dress Company is a retailer that sells clothing. The entityhas launched a promotional campaign whereby if customersbuy clothing with a single purchase of at least P4,000, theentity shall issue "30% discount coupons" on selected items.The coupons may be used for 3 months following thecampaign.During the campaign, the entity sold clothing worthP5,400,000 and issued 500 "30% discount coupons".The entity expected that 80% of the coupons will be redeemedand customers using the coupons buy clothing at an averageprice of P5,000.1. What amount should be reported as stand-alone sellingprice of the discount coupons?a. 750,000b. 600,000c. 400,000d. 300,0002. What amount of transaction price should be allocated tothe discount coupons?a. 600,000b. 500,000c. 540,000d. 270,0003. What amount should be recorded initially as salesrevenue?a. 4,860,000b. 5,400,000c. 2,560,000d. 1,960,0004. What amount should be recorded as sales revenue fromthe redemption of coupons?a. 2,500,000b. 1,940,000c. 1,750,000d.1,400,00062

ANSWERS:- 1. b.600,000 2. c.540,000 3. b.5,400,000 4. d.1,400,000 ANSWERS WITH EXPLANATION:- 1.…

Answered: Dress Company is a retailer that sells…

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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