Part B. Beaver Limited is a retail company that sells sporting goods. The company has acustomer loyalty program that allows customers to earn points based on sales made. Thesepoints can be accumulated and used for future purchases. One customer loyalty point is awardedfor every $1 of purchases. During March 2023, the company recorded sales of $1,725,000 tocustomers who were accumulating points. The stand-alone value of these goods sold was$1,725,000. Beaver has also determined that each point has a fair value of $0.017.Required:a. What are the two performance obligations?b. Sale of Goodsc. Customer Loyalty Program1. Allocate the sales price of $1,725,000 to the two performance obligationsAllocation to Performance obligation 1: $Allocation to performance obligation 2: $2. Prepare the entry to record the sales (all cash) for the month of March 2023.CashRevenueLoyalty LiabilityDebit1,725,000Credit

1.Performance Obligation 1: 1$ Sale = 1 Customer Loyalty PointTotal March Sales = $1,725,000Total…

Answered: Part B. Beaver Limited is a retail…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sammy John Ltd has a customer loyalty programme that rewards a customer with one customer loyalty point for every $10 of purchases. Each point is redeemable for a $1 discount on any future purchases Customers purchase products for $100,000 and earn 10,000 points The entity expects 9,500 points to be redeemed, so they have a stand-alone selling price $9,500 Identify the steps in the revenue recognition process match the steps to the relevant process in the case above to describe how it will be dealt with under IFRS 15?
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?
To keep up with sales trends, Sunland Inc., a public company following IFRS, implemented a customer loyalty program that rewards a customer with one loyalty point for every $30 of purchases. Each point is redeemable for a $1 discount on any purchases of Sunland merchandise in the next two years. Following the implementation of the program, during 2023, customers purchased products for $315,000 and earned 10,500 points redeemable for future purchases. (All products are sold to provide a 40% gross profit.) The stand-alone selling price of the purchased products is $315,000. Based on prior experience with incentive programs like this, Sunland expects 9,000 points to be redeemed related to these sales. (a) Measure the separate performance obligations in the Sunland bonus point program. (Round percentage allocations to 2 decimal ploces, e.g. 25.55 and final answers to O decimal places, eg. 25,000.) Products Bonus points
Pagan Restaurants accepts credit and debit cards as forms of payment. Assume Pagan had $10,000 of credit and debit card sales on April 30, 2023. 9. 10. Suppose Pagan's processor charges a 1% fee and deposits sales net of the fee. Joumalize the sales transaction for the restaurant. Suppose Pagan's processor charges a 1% fee and deposits sales using the gross method. Journalize the sales transaction for the restaurant. 9. Suppose Pagan's processor charges a 1% fee and deposits sales net of the fee. Journalize the sales transaction for the restaurant. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Apr. 30 10. Suppose Pagan's processor charges a 1% fee and deposits sales using the gross method. Joumalize the sales transaction for the restaurant. Date Apr. 30 Accounts and Explanation Debit Credit
To increase sales, Pharoah Inc., a public company following IFRS, implemented a customer loyalty program that rewards a customer with one loyalty point for every $30 of merchandise purchased. Each point is redeemable for a $2.50 discount on any purchases of Pharoah merchandise in the next three years. After the program launched, during 2023, customers bought merchandise for $300,000 (all products are sold to provide a 30% gross profit) and earned 10,000 points redeemable for future purchases. The stand-alone selling price of the merchandise sold is $300,000. Based on prior experience with incentive programs like this, Pharoah expects 8,000 points to be redeemed related to these sales. (b) Prepare the journal entries for cash sales including the issuance of loyalty points for Pharoah in 2023. (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.…
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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.
A television satellite operator launches a loyalty program by which points are granted for using satellite services. The points entitle the customer to a discount on the price to upgrade the satellite receiver or other equipment such as a digital box. Customers who accumulate 1,036 points will receive $259 off the purchase price of any equipment. (In other words, one point has a $0.25 value.) During the first year of the program, customers had accumulated 1,554,000 points on total revenue of $7,536,900. The operator expects that 60% of the points granted will be redeemed. Of the points granted in the first year, 518,000 were redeemed. How would the loyalty program be reflected in the first two years of launch? (Do not round other intermediate calculations. Round percentage of total selling price calculations to 1 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g. 125.) Revenue Liability related to loyalty points $ 7536900
Ryan Manufacturing sells flat-pack bookcases to retailers. The following transactions occurred during the month of July 2019. All sales on account come with terms of 5/10, net 30. Jul 1 Received a loan from the bank for $20,000. Jul 5 Sold products for cash to Brock Retailer for $9,000. The products had a cost of $4,950. Jul 9 Sold products on account to Furniture Outlet for $10,200. The products had a cost of $6,120. Jul 11 Furniture Outlet paid the amount owing from Jul 9. Jul 19 Sold products on account to Brock Retailer for $6,700. The products had a cost of $3,685. Requireda) Record the above transactions in the sales journal and the cash receipts journal.b) Post the appropriate transactions from the journals to the subledger accounts.c) At the end of the month, total the journals and update the accounts receivable control account.Do not enter dollar signs or commas in the input boxes. Sales Journal Page 1 Date Account Invoice # Accounts Receivable / Sales…
Use the information for the next three (3) questions. Seva 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 2020, the customer earned 60,000 points. Management expects that 100% of these points will be redeemed. 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.On December 31, 2020, 28,800 points have been redeemed in exchange for purchases.In 2021, the management revised expectations and now expects 90% of the points to be redeemed. 9,000 points were redeemed during the year.How much of the sales should be allocated to the award points? How much should be recognized as revenue for 2020? How much should be recognized as revenue for 2021?
A. Camy Enterprise is a wholesaler company that sells various types of kitchenware. The following is the list of transactions in December 2021. Dec 2 Makes a payment of RM220,500 to Yuhan Sdn Bhd for the pressure cooker purchased on 18 October 2021. 6 Purchases 25 units of frying pans from The King Ware Sdn Bhd with a total cost of RM7,000 by account. The credit term is 5/15, n/45. The frying pans were delivered with an agreement of F.O.B shipping point that cost RM100. 11 Sells 32 units of steamers to Pan Asia Nusantara Resort at a total sales price of RM9,600. The cost of the steamer is RM220 per unit. The transaction was made by cash. Accepts a return of two units of steamers from Pan Asia Nusantara Resort due to a slight dent on the steamers. Camy Enterprise made full cash return to Pan Asia Nusantara Resort. 16 A unit of frying pan is returned to The King Ware Sdn Bhd due to the wrong size and the outstanding balance owed is reduced by RM280. 18 Golden Chef Cullinary College…

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