Homework Help is Here – Start Your Trial Now!
Business
Accounting
Excellent Company manufactures a product that is packaged and sold. A plate  is offered to customers sending in three wrappers accompanied by a remittance of P20. Data with respect to the premium offer are summarized below:   Sales Purchase of premium, P50 per plate Number of plates distributed as   3,800,000 4,000,000     380,000 560,000   premium 4,500 8,000   Estimated number of plates to be   distributed in subsequent period 2,500 3,500  Distribution cost P10 per plate Required: Prepare journal entries that would be made in 2020 and 2021 to record sales,  premium purchases and redemptions, and year-end adjustments.

Excellent Company manufactures a product that is packaged and sold. A plate  is offered to customers sending in three wrappers accompanied by a remittance of P20. Data with respect to the premium offer are summarized below:   Sales Purchase of premium, P50 per plate Number of plates distributed as   3,800,000 4,000,000     380,000 560,000   premium 4,500 8,000   Estimated number of plates to be   distributed in subsequent period 2,500 3,500  Distribution cost P10 per plate Required: Prepare journal entries that would be made in 2020 and 2021 to record sales,  premium purchases and redemptions, and year-end adjustments.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

Excellent Company manufactures a product that is packaged and sold. A plate  is offered to customers sending in three wrappers accompanied by a remittance of P20.

Data with respect to the premium offer are summarized below:

 

Sales

Purchase of premium, P50 per plate Number of plates distributed as  

3,800,000 4,000,000    

380,000 560,000  

premium 4,500 8,000  

Estimated number of plates to be  

distributed in subsequent period 2,500 3,500  Distribution cost P10 per plate

Required:

Prepare journal entries that would be made in 2020 and 2021 to record sales,  premium purchases and redemptions, and year-end adjustments.  

 

6:19 РМ O: 74 PDF ities and Exerdi Open with 1. Excellent Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P20. Data with respect to the premium offer are summarized below: Sales 3,800,000 4,000,000 Purchase of premium, P50 per plate Number of plates distributed as 380,000 560,000 premium 4,500 8,000 Estimated number of plates to be distributed in subsequent period Distribution cost P10 per plate 2,500 3,500 Required: Prepare journal entries that would be made in 2020 and 2021 to record sales, premium purchases and redemptions, and year-end adjustments. 2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash rebate on specific CDs. Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program. 3. Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-atone setting * the award credits granted is refiably measured at P1.000.000 Page 8 the entity sold goods to customers for a total onsideration of P7,000,000 based on stand-alone selling price. The award, credies dseredaderetalruaredits exnected to be 15
Transcribed Image Text:6:19 РМ O: 74 PDF ities and Exerdi Open with 1. Excellent Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P20. Data with respect to the premium offer are summarized below: Sales 3,800,000 4,000,000 Purchase of premium, P50 per plate Number of plates distributed as 380,000 560,000 premium 4,500 8,000 Estimated number of plates to be distributed in subsequent period Distribution cost P10 per plate 2,500 3,500 Required: Prepare journal entries that would be made in 2020 and 2021 to record sales, premium purchases and redemptions, and year-end adjustments. 2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash rebate on specific CDs. Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program. 3. Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-atone setting * the award credits granted is refiably measured at P1.000.000 Page 8 the entity sold goods to customers for a total onsideration of P7,000,000 based on stand-alone selling price. The award, credies dseredaderetalruaredits exnected to be 15
6:19 PM O 74 Company is a re PDF |on specific CDs Open with promotion, it offere 1 u50 cash the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. a proof of purcha., se . from Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program. 3. Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Expected to be Redeemed Redeemed 2020 15,000 80% 7,950 2,550 2021 85% 2022 85% 2023 15,000 90% Required: Prepare journal entries from 2020 to 2023. overage Assessment Assessment will be uploaded on Google Classroom. Page Prenared by: 15 译
Transcribed Image Text:6:19 PM O 74 Company is a re PDF |on specific CDs Open with promotion, it offere 1 u50 cash the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. a proof of purcha., se . from Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program. 3. Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Expected to be Redeemed Redeemed 2020 15,000 80% 7,950 2,550 2021 85% 2022 85% 2023 15,000 90% Required: Prepare journal entries from 2020 to 2023. overage Assessment Assessment will be uploaded on Google Classroom. Page Prenared by: 15 译
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS