Mercado Company has an arrangement with Kian Company that operates a customer loyalty program. The entity grants loyalty points of Kian Company when they spend a specified amount on purchases. Program members can redeem their points with Kian Company. The points have no expiry date. During 2020, the customers earned 60,000 points the stand-alone selling price of each
Q: SM Department Store sells gift certificates, redeemable for store merchandise that expires one year…
A: Unearned revenue on December 31, 2021 = Unearned revenue at December 31, 2020 + sales for 2021 -…
Q: SG Inc. has a branch in Boracay established on April 1, 2020. During the year 2020, SG shipped…
A: Branch accounting is a book keeping system in which separate accounts are kept for each…
Q: MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points…
A: In the given question it is given that in 2019 the entity issued 50,000 award credits. The fair…
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: Given details: A) Stand-alone price of handset= $ $649.00 B) Stand-alone price of services =$1,536…
Q: Erika Company operates a customer loyalty program. The entity grants loyalty points for goods…
A: Answer: Product Sales = P7,000,000 Points - Stand-alone Selling Price = P1,000,000 (Assumption: It…
Q: How much of the sales should be allocated to the award points? How much should be recognized as…
A: The stand-alone selling price of 1 loyalty point = P 20 During 2020, no of points customer earned =…
Q: During 2020, ABC Company sold 500,000 boxes of brownies mix under a new sales promotional program.…
A: The question is based on the concept of Financial Accounting.
Q: How much is the warranty expense for the year ended December 31, 2021? With the goal of attracting…
A: Warranty expense refers to the expense incurred or expected to be incurred on the free repairs or…
Q: In packages of its products, Taurus Company includes coupons that may be presented at retail stores…
A: Face amount of coupon issued = P7500, 000 Amount to be paid to retailers = (Face amount of coupons…
Q: During 2020, STU Company sold 500,000 boxes of brownies mix under a new sales promotional program.…
A: Net premium expense = Cost of baking pan + Handling and Shipping - Remittance from customer = 50 + 5…
Q: Rea Company regularly buys sweaters from Litton Company and is allowed a trade discount of 20% and…
A: First trade discount = List price x 20% = P1,800,000 x 20% = P360,000
Q: Prepare journal entries from 2020 to 2023.
A:
Q: Huawey Company, a telco operator, entered into a contract with Badjyang on Feb. 1, 2019. In line…
A: It is pertinent to note that as per IFRS 15 if a contract consists of two or more goods and services…
Q: SUGA Company sold 485,000 boxes
A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…
Q: An entity sells car's spare parts to ZZZ Car Repair during 2020. The entity offers rebates of 3% on…
A: As per the given condition, if the overall purchase of the year exceeds $ 120000 then rebate will be…
Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…
A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…
Q: Bavarian Bar and Grill opened for business in November 2021. During its first two months of…
A: Accounting for Gift Card: - When a company sells a gift card, it is not considered revenue, instead,…
Q: WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires one…
A: Unearned revenues are those revenues which are received in advance by the business but that will be…
Q: William Company operates a customer loyalty program. T entity grants loyalty points for goods…
A: Revenue in another terms is an income.Revenue is generated is through business through profits.
Q: With the goal of attracting as much customers as possible in the CAR region, LISA Appliance Co.…
A: An estimated premiums claim refers to the money set aside by a company to compensate for the claims…
Q: Steig's Sports Store has a customer loyalty program in which it issues points to customers for every…
A: The question is based on the concept of Financial Accounting.
Q: Compute Premium Liability in 2019.
A: Premium Liability is the expected amount of redemptions yet to be for the year 2019 Premium…
Q: Blake Company mails coupons to consumers which may be presented at a stated expiration date at…
A: Premium liability Premiums and coupons are promotions offered by the company to customers such as…
Q: How much is the premium expense for the year ended December 31, 2021? With the goal of attracting…
A: Generally company uses the premium method for promotion as well as increase the sells of the…
Q: Familiar Company operates a customer loyalty program. The entity grants loyalty points for goods…
A: Revenue - Revenue is referred to as the money which is generated from business activities and it…
Q: Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math…
A:
Q: Larkspur Inc. sells prepaid telephone cards to customers. Larkspur then pays the telecommunications…
A: As per revenue recognition concept, a revenue has to be recognized by a entity when it is earned and…
Q: James Company has an arrangement with with Jorge Company that operates a customer loyalty program.…
A: Customer loyalty programs are accounted for as per IFRS 15. Such a program is used by a company to…
Q: ssume that Kwek-kwek Corp. participates in a customer loyalty program operated by Suka Corporation…
A: Total Sales of Kwek-Kwek = 10,000,000 As per loyalty program operated by Suka corporation 1 point is…
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: Answer 1: Given information, The unlimited talk and 2 GB data plan is priced = $49 per month…
Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…
A: Premium expense refers to the expense of the insurance benefit incurred by the candidate as a part…
Q: Assume that Kwek-kwek Corp. participates in a customer loyalty program operated by Suka Corporation…
A: 1 point is granted ever P200 spent
Q: At December 31, 2020, Feel Company had 20,000 gift certificates outstanding, which had been sold to…
A: The cash basis of accounting says the firm has to record the transaction only when corresponding…
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: Indicate how much income Ayayai should recognize in January, February, March, and April.
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: AAA Company sells gift certificates that expire one year after their issuance. Information on gift…
A: Unearned revenue is the revenue received in advance. it must be shown in liabilities but not to be…
Q: What amount of liability must be presented in the statement of financial position relating to…
A: Amount of liability must be presented in the statement of financial position relating to customer…
Q: 11. PEANUTS Company, a grocery retailer operates a customer loyalty program. It grants program…
A: • In the case of accounting for a customer loyalty programme, a portion of sales from the total…
Q: Bavarian Bar and Grill opened for business in November 2021. During its first two months of…
A: 1.
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: In the given case, Company enters into two years contract The cost of a wireless plan is $68 per…
Q: Bavarian Bar and Grill opened for business in November 2018. During its first two months of…
A: Current liability: Current liability is a debt that the companies need to pay the debts from…
Q: According to Jorge Company: On December 31, 2020, 28,800 points have been redeemed in…
A: Revenue is an accrual accounting principle used to ascertain particular events under which income is…
Q: MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points…
A: In order to determine the revenue earned in 2020 the award credit in 2020 is required to be…
Q: Griffin Company mails coupons to consumers which may be presented at a stated expiration date at…
A: Liabilities is the sum the corporation owes to outsiders. Liabilities are shown on left side of…
Q: Besik Inc. operates a customer loyalty program. The entity grants loyalty points for goods…
A: SOLUTION WORKING NOTE SALES 8500000 POINTS 1500000 TOTAL 1000000.
Q: Redeemed Expected to be redeemed 2019 45,000 80% 2020 22,500 90% What is the revenue from…
A: Actual sale of goods sold to customer on stand alone basis is: =P12,000,000 - P3,000,000 =P9,000,000…
Q: Bavarian Bar and Grill opened for business in November 2021. During its first two months of…
A: 1. Prepare the appropriate journal entries
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: Loud Company enters into 2 year contract with a Customer and provides services Unlimited talk time…
Step by step
Solved in 2 steps
- James Company has an arrangement with with Jorge Company that operates a customer loyalty program. The entity grants loyalty points of Jorge Company when they spend a specified amount on purchases. Program members can redeem their points with Jorge Company. The points have no expiry date. During 2020, the customers earned 60,000 points. The stand-alone selling price of each loyalty point is estimated at P20. The sales during 2020 amounted to P6,800,000 based on stand-alone selling price. According to Jorge Company: On December 31, 2020, 28,800 points have been redeemed in exchange for purchases. In 2021, customers have redeemed 9,000 points. How much is the revenue to be recognized by James in 2020?James Company has an arrangement with with Jorge Company that operates a customer loyalty program. The entity grants loyalty points of Jorge Company when they spend a specified amount on purchases. Program members can redeem their points with Jorge Company. The points have no expiry date. During 2020, the customers earned 60,000 points. The stand-alone selling price of each loyalty point is estimated at P20. The sales during 2020 amounted to P6,800,000 based on stand-alone selling price. According to Jorge Company: On December 31, 2020, 28,800 points have been redeemed in exchange for purchases. In 2021, customers have redeemed 9,000 points. How much is the initial unearned customer loyalty points to be recognized by James?Besik Inc. 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. During 2020, the entity issued 25,000 award credits and expects that 85% of these shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,500,000. In 2020, the entity sold goods to customers for a total consideration of P 8,500,000 based on stand-alone selling price. On Dec. 31, 2020, 10,000 award credits have been redeemed. In 2021, the management revised expectations and expects 80% of the award credits to be redeemed. In 2021, 5,000 award credits redeemed. What is the revenue earned from award credits for 2021? *a. P 956,250b. P 600,000c. P 356,250d. P 318,750
- 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: Redeemed Expected to be Redeemed 2020 15,000 80% 2021 7,950 85% 2022 2,550 85%…Familiar 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 2019, the entity issued 450,000 award credits and expects that 40% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P9,000,000. In 2019, the entity sold goods to customers for a total consideration of P36,000,0000 based on a stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 135,000 40% 2020 67,500 45% What is the revenue from points for 2019? P1,350,000 P3,600,000 P1,080,000 P3,375,000 What is the revenue from points for 2020?…Cinnamon 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 2019, the entity issued 150,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P3,000,000. In 2019, the entity sold goods to customers for a total consideration of P12,000,0000 based on a standalone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 45,000 80% 2020 22,500 90% What is the revenue from points for 2019? What is the revenue from points for 2020?
- 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: Redeemed Expected to be Redeemed 2020 15,000 80% 2021 7,950 85% 2022 2,550 85% 2023 15,000 90% Required: Prepare journal entries from 2020 to 2023.Zilong Company operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on purchases. Program members can redeem the points for further purchases. The points have no expiry date. During 2021 the entity granted 80,000 points. Management expects that 90% of these points will be redeemed. The fair value of each loyalty point is estimated at P20. The sales during 2021 amounted to P9,000,000 including loyalty points. On December 31, 2021, 28,800 points have been redeemed in exchange for purchases. In 2022 the management revised its expectations and expects 85% of the points to be redeemed altogether. During 2022, the entity redeemed 12,000 points. What is the revenue earned from loyalty points for the year ended December 31, 2021?ABC Company runs a department store and grants loyalty awards to its customers. For every P 100 purchase made by the customer, the customer receives a credit of 5 points equivalent to P 5. The accumulated points can be used by the customer to as part or full payment of for merchandise purchased in the future. During the year 2019, the company made sales of P 10,000,000. The fair value of the points is equivalent to the total number of points awarded during the year. For the year 2019, ABC expects that 70,000 points will be redeemed but only 65,000 points were redeemed relating to 2019 sales. For the year 2020, an additional 20,000 points were redeemed and ABC revised its estimate that only 10,000 points granted in 2019 will be redeemed as of December 31,2020. How much revenue is recognized as a result of the redemption of points for the year 2020?
- ABC Company runs a department store and grants loyalty awards to its customers. For every P 100 purchase made by the customer, the customer receives a credit of 5 points equivalent to P 5. The accumulated points can be used by the customer to as part or full payment of for merchandise purchased in the future.During the year 2019, the company made sales of P 10,000,000. The fair value of the points is equivalent to the total number of points awarded during the year. For the year 2019, ABC expects that 70,000 points will be redeemed but only 65,000 points were redeemed relating to 2019 sales. For the year 2020, an additional 20,000 points were redeemed and ABC revised its estimate that the total number of points that will be redeemed is 90,000 points.What amount of liability must be presented in the statement of financial position relating to customer loyalty awards at December 31,2020? How much revenue is recognized as a result of the redemption of points for the year 2019? and What…ABC Company runs a department store and grants loyalty awards to its customers. For every P 100 purchase made by the customer, the customer receives a credit of 5 points equivalent to P 5. The accumulated points can be used by the customer to as part or full payment of for merchandise purchased in the future.During the year 2019, the company made sales of P 10,000,000. The fair value of the points is equivalent to the total number of points awarded during the year. For the year 2019, ABC expects that 70,000 points will be redeemed but only 65,000 points were redeemed relating to 2019 sales. For the year 2020, an additional 20,000 points were redeemed and ABC revised its estimate that the total number of points that will be redeemed is 90,000 points.How much revenue is recognized as a result of the redemption of points for the year 2020?GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2018, GoodBuysold $1,000,000 of gift cards, and $840,000 of the gift cards were redeemed for products. As of December 31,2018, $30,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards willnever be redeemed. How much gift card revenue should GoodBuy recognize in 2018?