How much is the expense to be recognized by ABC in 2021?
Q: During 2021, Truffle Company sold 500,000 boxes of hotcakes under a new sales promotional program.…
A: The unredeemed coupon is treated as a liability because the company either has to provide goods or…
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A: Inventory at the year end = Cost of inventory sent to consignee - Cost of inventory sold by…
Q: Coronado Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops…
A: Liability: Any amount that needs to be paid after a fixed time interval is known as a liability of…
Q: Swifty Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops…
A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…
Q: At the beginning of the current year, Clan Company offers the customers a pottery bowl if they send…
A: Liability represents the obligation that has to be paid by the company by sacrificing the assets of…
Q: Mogul Company ships inventory to Ski Outfit in a consignment arrangement. The arrangement specifies…
A: The ending inventory comprises of the units that are not yet sold to the customers. The inventory…
Q: During 2020, Maine Company Sold 50,000 boxes of hotcakes under a new sales promotional program. Each…
A: Total estimated coupons that should be redeemed = 50,000 boxes ×80% = 40,000
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A: Given: List price = $79,000 Cash discount = $5,800 Sales tax = $2,600 Insurance = $1,800
Q: Crystal Company operates a customer loyalty programme. It grants programme members 10 loyalty points…
A: 10 loyalty points for every 1000 amount of groceries Fair value of each loyalty point is P5
Q: Baker Company sold consumer products that are packaged in boxes. The entity offered an unbreakable…
A: Formula: Estimated redemption units = Sales units x redemption percentage Multiplying sales units…
Q: Maximum Inc. (retailer) has a loyalty program that rewards its customers one point per $1 spent.…
A: Journal is the primary book where the transactions are originally recorded. Further, a journal entry…
Q: Sheridan Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers…
A: Cost of Mug $ 2.40 Cost of Mail $ 1.60 Total Cost $ 4.00 Less: Sale Price $ 2.00…
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A: Allowance for Sales Return = Total Sales x Expected % of Sales return…
Q: The NULL Corp. is engaged in a sales promotion, giving a rebate of P4.00 for every food box…
A: Estimated total liability = no. of boxes sold x 80% x rebate per box = 50000 x 80% x P4 = P160,000
Q: Fry Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Fry boxes and…
A: Solution : Total boxes sold 675000 Boxes that is estimated to be sent by customers (60% of…
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A: Income earned by Crane inc. is the amount of commission received on sale of prepaid telephone cards…
Q: Determine the true net income of the branch.
A: SOLUTION : The head office has billed the merchandise which was send to the branch office at 110%…
Q: ABC Department store grants loyalty awards to its customers wherein for every P 100 purchase made,…
A: Revenue Recognition-IFRS 15 As per IFRS-15 , once goods or services at the transaction price are…
Q: The Cold Foods Corp. launched a sales promotion of its new product, Cold Candy. For every six (6)…
A: Journal is known as the first book of entry or the original book of entry Given in the question:…
Q: What is the transaction price for the following scenario: Scenario A: Tula Inc. sells $20,000 of…
A: The transaction price is the actual expected return of the seller at which they agree to provide…
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A: Lets understand the basics.Sale of gift cards will generate deferred revenue for the business.…
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A: Premium expenses are those expenses which company incurs when they provide the sales with the…
Q: How much is the Unearned Revenue for Unredeemed Premiums?
A: When the connected items are sold, the cost of a premium, such as the unbreakable glass, in this…
Q: Novak Corp. offers its customers a 5-piece knife set in exchange for $9 and the purchase of its CC…
A: Journal entry : Method of recording financial transactions in the book of original entry by debiting…
Q: Splish Company sells goods to Blossom Company during 2020. It offers Blossom the following rebates…
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Q: Wildhorse Company sells goods to Sheffield Company during 2023. It offers Sheffield the following…
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Q: ROSE Corporation has a premiums payable balance of P242,000 on December 31, 2019 for a promotional
A: These are obligation which are to be paid with in one year and one operating cycle, whichever is…
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Q: Sage Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods…
A: Journal entry records every transaction by using the double-entry system. Sales as per net basis are…
Q: ers Its eal bo tons
A: Given: company sold=500,000 customer redeemed=220,000 boxtops receiving=55,000bowls
Q: Oriole Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops…
A: Box tops yet to be received=Total boxes sold×60%-Redeemed by customers=795,000×60%-356,000=121,000
Q: . LALA Department store grants loyalty awards to its customers wherein for every P 100 purchase…
A: Hi student Since there are multiple questions, we will answer only first question. Customer loyalty…
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A: Answer - Premium Liability - Premium Liabilities “refer to all future claim payments and related…
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A: This question deals with the concept of revenue recognition of the entity. When entity sells the…
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A: Rosas Company estimates that redemption will only be 60% of total sales. Thus, it will create a…
Q: On July 19, 2021, SLRTN Inc. sold 19,000 units of its inventory to a customer for a total cash price…
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…
ABC Company participates in a customer loyalty program operated by YG Corporation where it grants 1 point for every P200 spent on its oil products. Accumulated points by customers from ABC may be used to settle part or in full any merchandise purchased from YG. ABC pays YG P1 for each point redeemed. In 2021, total sales of the ABC amounted to P10,000,000. Only 45% of the 100% expected total points granted were redeemed by the customers from YG Corporation which was used to fully settle the purchase of goods during the year.
How much is the expense to be recognized by ABC in 2021?
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- ABC Department store grants loyalty awards to its customers wherein for every P 100 purchase made, the customer receives 5 points equivalent to P 5. The points accumulated by the customer may be used as part or full payment for merchandise purchases in the future. During 2018, total sales amounted to P 10,000,000. Fair values of the merchandise sold and reward points are P 9,500,000 and P 500,000, respectively. At the end 2018, 60% out of 90% have been redeemed by the customers. At the end 2019, an additional 20% have been redeemed and the revised estimate of total points expected to be redeemed was now at 95%. In accordance with IFRS 15, how much is the balance of the liability for customer loyalty awards as of December 31,2018? P 500,000 P 375,000 P 125,000 P 200,000Halifax Manufacturing allows its customers to return merchandise for any reason 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 liability of $390,000. During 2024, Halifax sold merchandise on account for $12,800,000. Halifax's merchandise costs are 70% of merchandise selling price. Also during the year, customers returned $370,000 in sales for credit, with $204,000 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 amount of the year-end refund…Question: 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 liability of $300,000. During 2024, Halifax sold merchandise on account for $11,500,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with $250,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Required: 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. What is the…
- On October 5, 2024, the Lalisa Trading Company consigned 48 computer units, costing P 8,000 each, to Jennie, Inc. The units were to be sold on either cash or credit basis at a commission of 15% of net sales. Lalisa paid freight of P 1,800 on the shipment. On November 11, Jennie received the goods. Sales were made as follows: · October 15 – 10 units for cash at P 13,000 each · October 28 – 12 units on account at P 14,000 each On October 31, 2024, collections on accounts amounted to P 95,000, and an allowance of P 2,000 was given to a charge customer for a defective unit. On November 15, 2024, Jennie made the proper remittance of cash received from customers. Required: 1. Determine the amount of remittance 2. Determine the consignment profit 3. Determine the cost of ending inventory on consignmentProblem 2 Erika Company operates lovaity program. The entity grants loyalty points for goods purchased. The loyalty points van be used by costumer in exchange for goods of the entity. The points have no expiry date. During 2021, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeerned. The Total Stand-alone selling price of the award credits granted is reliably measured at P1, 00,000 in 2021, the entity sold goods to costumers for a total consideration of P7, 000,000 based on stand-alone selling price. « Th i The award credits redeemed and the total award credits expected to be redeerned each year: Redeemed Expected to be Redeemed 2021 15,000 7,950 2,550 15.000 B0% 2022 85% 85% 90% 2023 2024 1. What amount should be reported as revenue points for 20217 A. 328, 125 B. 875,000 C. 700,000 D. 175,000 2. What amount should be reported as revenue frorn points for 2022? A. 472, 500 В. 4А, 375 C. 415, 625 D. 236, 250 3. What amount shauld be…In July 10, 2020, Marigold Ltd. sold $1.8 million of compressors to retailers on account. Marigold had paid $918,000 for these compressors. Marigold grants the right to return compressors that do not sell in three months following delivery. Past experience indicates that the normal return rate is 10%. By October 11, 2020, retailers returned compressors to Marigold and were granted a cash refund totalling $175,000. Marigold uses a perpetual inventory system and follows IFRS. Prepare Marigold's journal entries to record the sale on July 10, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation July 10 July 10 Accounts Receivable Purchase Returns and Allowances Sales Revenue (To record sales on account) Cost of Goods Sold (To record cost of goods sold) Debit Credit WIN
- (Customer Loyalty Program) Martz Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2017, customers purchase products for $300,000 (with a cost of $171,000) and earn 30,000 points redeemable for future purchases. Martz expects 25,000 points to be redeemed. Martz estimates a standalone selling price of $2.50 per point (or $75,000 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Martz concludes that the points are a separate performance obligation.Instructions(a) Determine the transaction price for the product and the customer loyalty points.(b) Prepare the journal entries to record the sale of the product and related points on July 2, 2017.(c) At the end of the first reporting period (July 31, 2017), 10,000 loyalty…MAYUMI Co. sold 50,000 units at P 225 per unit during May of this year. The cost per unit is P150. The entity granted the customers right to return within 90 days if not satisfied and will receive either a full refund if cash was already paid or a full credit for the amount owed to the entity. It is estimated that 7% of the units sold will be returned within the 90-day period. The entity used the perpetual method. What amount of sales revenue should be reported for the month of May?purchased, but do not earn additional loyalty points made by redeeming loyalty points. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2024, the company redeemed 11,400 points and sold additional product of $142,500, so it recorded of revenue of $153,900. The aggregate stand-alone selling price of the purchased products is $153,900. Seventy percent of sales were cash sales, and the remainder were credit sales. Required: 1. & 2. Prepare Supply Club's journal entry to record July and August sales. During August, customers redeem loyalty points on $68,400 of merchandise. Sixty-five percent of those sales were for cash, and the remainder were credit sales. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
