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Account Name Debit Credit 0 0 0 0 0 0 To record the sale of merchandise. To record the cost of sale of merchandise. 0 0 0 0 c. Only 25% of the coupons were redeemed during the redemption period on qualifying purchases of $16,100. Record the entry for the redemption of the coupons, ignoring the cost entries. Account Name To receognize revenue. Debit Credit 0 0 0 0 0 0 d. If the coupons, instead, offered 20% on future purchases (otherwise, same facts as before), how would the answers change to parts a and b, if at all? Account Name To record the sale of merchandise. Debit Credit 0 0 0 0 0 0 0 0 To record the cost of sale of merchandise. Identifying and Recording Customer Option for Additional Merchandise Pets Inc. launches a new advertising promotion where, for each purchase over $30, it offers a coupon for a 35% discount on a future purchase. There is a limit of one coupon per customer. Pets Inc. estimates that 28% of customers receiving the coupon will redeem the coupon on an average purchase of $24. Sales on the first day of the one-week promotional period totaled $280,000 resulting in 2,800 coupons distributed. Assume all sales were cash sales. Cost of sales is 45% of the selling price. a. Determine how many performance obligations are included in a sales transaction during the advertising promotion program. Assume that coupons readily available to the public online or in company fliers have a maximum discount of 20%. One performance obligation b. Record the journal entry to record revenue in the first day of the promotion period using the relative percentages to allocate standalone selling prices. •Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Performance Obligations Merchandise Customer option-merchandise credit Transaction Price as Stated Standalone Selling Price $ 0 $ 0 $ 0 0 $ 0 $ 0 $ Total Allocated Transaction Price (rounded) 0 0 0

Account Name Debit Credit 0 0 0 0 0 0 To record the sale of merchandise. To record the cost of sale of merchandise. 0 0 0 0 c. Only 25% of the coupons were redeemed during the redemption period on qualifying purchases of $16,100. Record the entry for the redemption of the coupons, ignoring the cost entries. Account Name To receognize revenue. Debit Credit 0 0 0 0 0 0 d. If the coupons, instead, offered 20% on future purchases (otherwise, same facts as before), how would the answers change to parts a and b, if at all? Account Name To record the sale of merchandise. Debit Credit 0 0 0 0 0 0 0 0 To record the cost of sale of merchandise. Identifying and Recording Customer Option for Additional Merchandise Pets Inc. launches a new advertising promotion where, for each purchase over $30, it offers a coupon for a 35% discount on a future purchase. There is a limit of one coupon per customer. Pets Inc. estimates that 28% of customers receiving the coupon will redeem the coupon on an average purchase of $24. Sales on the first day of the one-week promotional period totaled $280,000 resulting in 2,800 coupons distributed. Assume all sales were cash sales. Cost of sales is 45% of the selling price. a. Determine how many performance obligations are included in a sales transaction during the advertising promotion program. Assume that coupons readily available to the public online or in company fliers have a maximum discount of 20%. One performance obligation b. Record the journal entry to record revenue in the first day of the promotion period using the relative percentages to allocate standalone selling prices. •Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Performance Obligations Merchandise Customer option-merchandise credit Transaction Price as Stated Standalone Selling Price $ 0 $ 0 $ 0 0 $ 0 $ 0 $ Total Allocated Transaction Price (rounded) 0 0 0

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter21: Cash Budgeting (cashbud)
Section: Chapter Questions
Problem 1R: On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is...
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Account Name Debit Credit 0 0 0 0 0 0 To record the sale of merchandise. To record the cost of sale of merchandise. 0 0 0 0 c. Only 25% of the coupons were redeemed during the redemption period on qualifying purchases of $16,100. Record the entry for the redemption of the coupons, ignoring the cost entries. Account Name To receognize revenue. Debit Credit 0 0 0 0 0 0 d. If the coupons, instead, offered 20% on future purchases (otherwise, same facts as before), how would the answers change to parts a and b, if at all? Account Name To record the sale of merchandise. Debit Credit 0 0 0 0 0 0 0 0 To record the cost of sale of merchandise.
Transcribed Image Text:Account Name Debit Credit 0 0 0 0 0 0 To record the sale of merchandise. To record the cost of sale of merchandise. 0 0 0 0 c. Only 25% of the coupons were redeemed during the redemption period on qualifying purchases of $16,100. Record the entry for the redemption of the coupons, ignoring the cost entries. Account Name To receognize revenue. Debit Credit 0 0 0 0 0 0 d. If the coupons, instead, offered 20% on future purchases (otherwise, same facts as before), how would the answers change to parts a and b, if at all? Account Name To record the sale of merchandise. Debit Credit 0 0 0 0 0 0 0 0 To record the cost of sale of merchandise.
Identifying and Recording Customer Option for Additional Merchandise Pets Inc. launches a new advertising promotion where, for each purchase over $30, it offers a coupon for a 35% discount on a future purchase. There is a limit of one coupon per customer. Pets Inc. estimates that 28% of customers receiving the coupon will redeem the coupon on an average purchase of $24. Sales on the first day of the one-week promotional period totaled $280,000 resulting in 2,800 coupons distributed. Assume all sales were cash sales. Cost of sales is 45% of the selling price. a. Determine how many performance obligations are included in a sales transaction during the advertising promotion program. Assume that coupons readily available to the public online or in company fliers have a maximum discount of 20%. One performance obligation b. Record the journal entry to record revenue in the first day of the promotion period using the relative percentages to allocate standalone selling prices. •Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Performance Obligations Merchandise Customer option-merchandise credit Transaction Price as Stated Standalone Selling Price $ 0 $ 0 $ 0 0 $ 0 $ 0 $ Total Allocated Transaction Price (rounded) 0 0 0
Transcribed Image Text:Identifying and Recording Customer Option for Additional Merchandise Pets Inc. launches a new advertising promotion where, for each purchase over $30, it offers a coupon for a 35% discount on a future purchase. There is a limit of one coupon per customer. Pets Inc. estimates that 28% of customers receiving the coupon will redeem the coupon on an average purchase of $24. Sales on the first day of the one-week promotional period totaled $280,000 resulting in 2,800 coupons distributed. Assume all sales were cash sales. Cost of sales is 45% of the selling price. a. Determine how many performance obligations are included in a sales transaction during the advertising promotion program. Assume that coupons readily available to the public online or in company fliers have a maximum discount of 20%. One performance obligation b. Record the journal entry to record revenue in the first day of the promotion period using the relative percentages to allocate standalone selling prices. •Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Performance Obligations Merchandise Customer option-merchandise credit Transaction Price as Stated Standalone Selling Price $ 0 $ 0 $ 0 0 $ 0 $ 0 $ Total Allocated Transaction Price (rounded) 0 0 0
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