Prepare the journal entries related to the coupons for May and June. Be sure to inclu expiration of any coupons. For a compound transaction, if an amount box does not r entry, leave it blank. May 31 Cash Sales Revenue Estimated Coupon Liability 400,000 364,000 X 36,000 May 31 Cost of Goods Sold Inventory 215,000 215,000 Jun. 30 Cash 525,000 X Estimated Coupon Liability 33,000 X Sales Revenue 492,000 X Jun. 30 Cost of Goods Sold Inventory Jun. 30 Estimated Coupon Liability Sales Revenue 281,000 281,000 1,000 1,000
Prepare the journal entries related to the coupons for May and June. Be sure to inclu expiration of any coupons. For a compound transaction, if an amount box does not r entry, leave it blank. May 31 Cash Sales Revenue Estimated Coupon Liability 400,000 364,000 X 36,000 May 31 Cost of Goods Sold Inventory 215,000 215,000 Jun. 30 Cash 525,000 X Estimated Coupon Liability 33,000 X Sales Revenue 492,000 X Jun. 30 Cost of Goods Sold Inventory Jun. 30 Estimated Coupon Liability Sales Revenue 281,000 281,000 1,000 1,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sunbridge Stores prints a coupon on the bottom of all its May sales receipts for $3 off the customer's next purchase of over $20. The coupons may be redeemed in June 1. Sunbridge estimates that 20% of the coupons will be redeemed before they expire on August 31. During May, Sunbridge sold, for cash, merchandise for $400,000, which generated 60,000 sales receipts. The cost of the merchandise sold was $215,000. During June, Sunbridge sold $525,000 of merchandise for cash that costs $281,000. Additionally, 11,000 coupons were redeemed. Sunbridge uses a perpetual inventory system.
Transcribed Image Text:Prepare the journal entries related to the coupons for May and June. Be sure to inclu
expiration of any coupons. For a compound transaction, if an amount box does not r
entry, leave it blank.
May 31 Cash
Sales Revenue
Estimated Coupon Liability
400,000
364,000 X
36,000
May 31 Cost of Goods Sold
Inventory
215,000
215,000
Jun. 30 Cash
525,000 X
Estimated Coupon Liability
33,000 X
Sales Revenue
492,000 X
Jun. 30 Cost of Goods Sold
Inventory
Jun. 30 Estimated Coupon Liability
Sales Revenue
281,000
281,000
1,000
1,000
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