Hii expert please given correct answer general Accounting During the year, L&M Leather Goods sold 1,080,000reversible belts under a new sales promotionalprogram. Each belt carried one coupon, which entitlesthe customer to a $4.80 cash rebate. L&M estimatesthat 77% of the coupons will be redeemed, eventhough only 507,000 coupons had been processedduring the year. At December 31, L&M should reporta liability for unredeemed coupons of:A. $831,600B. $2,433,600C. $3,991,680D. $1,558,080

Step 1: Define LiabilityIn financial accounting, liability refers to the amount a company owes to…

Answered: During the year, L&M Leather Goods sold…

Principles of Accounting Volume 2

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ISBN:9781947172609

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Chapter7: Budgeting

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Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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At December 31, 2021, Suo’s Boutique had 2,000 gift certificates outstanding, which had been sold to customers during 2021 for P50 each. Sue’s operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 2,000 outstanding gift certificates should be deferred at December 31, 2021? a. P0 b. P40,000. c. P60,000. d. P100,000.
Sunbridge Stores prints a coupon on the bottom of all its May sales receipts for $3 off the customer's next purchase of over $20. The coupons may be redeemed in June 1. Sunbridge estimates that 20% of the coupons will be redeemed before they expire on August 31. During May, Sunbridge sold, for cash, merchandise for $400,000, which generated 60,000 sales receipts. The cost of the merchandise sold was $215,000. During June, Sunbridge sold $525,000 of merchandise for cash that costs $281,000. Additionally, 11,000 coupons were redeemed. Sunbridge uses a perpetual inventory system. Required: Prepare the journal entries related to the coupons for May and June. Be sure to include the expiration of any coupons. For a compound transaction, if an amount box does not require an entry, leave it blank.
Sunbridge Stores prints a coupon on the bottom of all its May sales receipts for $3 off the customer's next purchase of over $20. The coupons may be redeemed in June 1. Sunbridge estimates that 20% of the coupons will be redeemed before they expire on August 31. During May, Sunbridge sold, for cash, merchandise for $400,000, which generated 60,000 sales receipts. The cost of the merchandise sold was $215,000. During June, Sunbridge sold $525,000 of merchandise for cash that costs $281,000. Additionally, 11,000 coupons were redeemed. Sunbridge uses a perpetual inventory system.
At December 31, 2020, Feel Company had 20,000 gift certificates outstanding, which had been sold to customers during 2020 for P500 each. Feel operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 20,000 gift certificates should be deferred at December 31, 2020? *
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?
During 2020, Gray 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 300,000 coupons had been processed during 2020. 2a. What amount should be reported as premium expense for 2020? a. P 2,000,000 b. P 4,500,000 c. P 6,000,000 d. P 7,500,000 2b. What amount should be reported as liability for unredeemed coupons on December 31, 2020? a. 1,000,000 b. 1,500,000 c. 3,000,000 d. 5,000,000
Bull's Eye Department Stores, Inc. records $150,000 in gift card sales and receives cash in year 1. Customers redeemed 20% of the gift cards to purchase merchandise in year 1. The company estimates breakage as 15% and uses the proportional method. How much breakage revenue should be recorded at the end of year 1? (Round any intermediary percentages two decimal places, XXX%. Round your final answer to the nearest dollar.) A. $22,500 B. $5,294 C. $30,000 D. $4,500
Shoemart Company issues gift certificates in denominations of P50, P100, P500 and P1,000. These certificates are redeemable in merchandise having an average gross profit of 30% of selling price. During the current year, the entity sold P500,000 worth of gift certificates and redeemed certificates having a sales value of P400,000. It is estimated that 8% of the certificates issued will not be redeemed by reason of expiration. 1. The balance of the gift certificates payable account as of year-end is:
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 2024 with a refund llability of $390,000. During 2024, Halifax sold merchandise on account for $12,400,000. Halifax's merchandise costs are 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 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at year end. 2. What is the…

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