Energetic Company includes one coupon in each box of laundry soap it sells for P500 each. A towel costing P100 and with a selling price of P120 is offered as a premium to customers who send in 10 coupons and a remittance of P20. The following are the information available (see image below). Energetic’s experience indicates that only 30% of the coupons will be redeemed. (Do not round off during computation) How much is the Total Revenue to be recognized in 2021?
Energetic Company includes one coupon in each box of laundry soap it sells for P500 each. A towel costing P100 and with a selling price of P120 is offered as a premium to customers who send in 10 coupons and a remittance of P20. The following are the information available (see image below). Energetic’s experience indicates that only 30% of the coupons will be redeemed. (Do not round off during computation) How much is the Total Revenue to be recognized in 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Energetic Company includes one coupon in each box of laundry soap it sells for P500 each. A towel costing P100 and with a selling price of P120 is offered as a premium to customers who send in 10 coupons and a remittance of P20. The following are the information available (see image below).
Energetic’s experience indicates that only 30% of the coupons will be redeemed. (Do not round off during computation)
How much is the Total Revenue to be recognized in 2021?
![Boxes of soap sold
Number of towels purchased
Coupons redeemed
2021
50,000
2,000
14,000
2022
80,000
2,500
20,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F93534dd0-5aac-4e5c-a7f2-f159ac49b54c%2Ffce4a949-0aff-4215-8d81-cd566b01531a%2Fdgmtpya_processed.png&w=3840&q=75)
Transcribed Image Text:Boxes of soap sold
Number of towels purchased
Coupons redeemed
2021
50,000
2,000
14,000
2022
80,000
2,500
20,000
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