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merchandise is purchased. Upon redemption, Cobb Company Cobb Company sells gift certificates redeemable only when Problem 1-16 (AICPA Adapted) Cobb Company sells gift certificates redeemable only when recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 Gift certificates sold Gift certificates redeemed Gift certificates unredeemed for a long time Cost of goods sold 650,000 2,250,000 1,950,000 100,000 60% What amount should be reported as unearned revenue at year-end? a. 510,000 b. 570,000 c. 850,000 d. 950,000

merchandise is purchased. Upon redemption, Cobb Company Cobb Company sells gift certificates redeemable only when Problem 1-16 (AICPA Adapted) Cobb Company sells gift certificates redeemable only when recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 Gift certificates sold Gift certificates redeemed Gift certificates unredeemed for a long time Cost of goods sold 650,000 2,250,000 1,950,000 100,000 60% What amount should be reported as unearned revenue at year-end? a. 510,000 b. 570,000 c. 850,000 d. 950,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cobb Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cobb Company Problem 1-16 (AICPA Adapted) recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 Gift certificates sold Gift certificates redeemed 650,000 2,250,000 1,950,000 100,000 60% Gift certificates unredeemed for a long time Cost of goods sold What amount should be reported as unearned revenue at year-end? а. 510,000 b. 570,000 c. 850,000 d. 950,000
Transcribed Image Text:Cobb Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cobb Company Problem 1-16 (AICPA Adapted) recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 Gift certificates sold Gift certificates redeemed 650,000 2,250,000 1,950,000 100,000 60% Gift certificates unredeemed for a long time Cost of goods sold What amount should be reported as unearned revenue at year-end? а. 510,000 b. 570,000 c. 850,000 d. 950,000
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