Problem 2-27 (IFRS) During the current year, Isabel Company sold gift certificates to customers worth P6,000,000. The gift certificates are nonrefundable and it is reliably determined that the breakage estimate is P600,000. Before the end of the year, the entity redeemed gift certificates worth P3,600,000. 1. What amount should be reported as breakage revenue for the current year? 400,000 b. 600,000 500,000 a. с. d. What amount should be reported as deferred revenue from gift certificates at year-end? 2,400,000 b. 2,000,000 6,000,000 с. d. a.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 2-27 (IFRS)
During the current year, Isabel Company sold gift certificates
to customers worth P6,000,000. The gift certificates are
nonrefundable and it is reliably determined that the breakage
estimate is P600,000. Before the end of the year, the entity
redeemed gift certificates worth P3,600,000.
1. What amount should be reported as breakage revenue
for the current year?
a.
400,000
b. 600,000
500,000
0.
ns en
с.
d.
What, amount should be reported as deferred revenue
from gift certificates at year-end?
a.
2,400,000
b.
2,000,000
с.
6,000,000
d.
Problemn 2-28 (AT CPA Adont
2.
Transcribed Image Text:Problem 2-27 (IFRS) During the current year, Isabel Company sold gift certificates to customers worth P6,000,000. The gift certificates are nonrefundable and it is reliably determined that the breakage estimate is P600,000. Before the end of the year, the entity redeemed gift certificates worth P3,600,000. 1. What amount should be reported as breakage revenue for the current year? a. 400,000 b. 600,000 500,000 0. ns en с. d. What, amount should be reported as deferred revenue from gift certificates at year-end? a. 2,400,000 b. 2,000,000 с. 6,000,000 d. Problemn 2-28 (AT CPA Adont 2.
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