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.

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

IA - RECEIVABLE FINANCING 17. ABC has an accounts receivable with a gross amount of P200,000 and 1% sales discount if collected within 60 days. ABC sold this account to nC20 Finance Inc under a continuing agreement, with a factoring fee and commission of 5%. Also, nC20 withheld 15% of the net accounts receivable as protection for possible merchandise returns from ABC’s client. Assuming nC20 was informed by ABC that the client has returned P10,000 worth of merchandise, and the client has paid its account fully to the bank, determine the cash received by ABC from nC20 after the full collection of client’s accounts. Round off final answer to the nearest peso.
ABC Company has an outstanding receivable of P1,000,000 as of December 31, 2020. A test of collectability of the receivable showed that P700,000 is currently collectible and not impaired; P300,000 has been outstanding more than the required period for similar transaction and objective evidence showed that only P150,000 is considered realizable; the remaining receivable balance has been outstanding for 2 years and the company estimates that none of which will be realized. What amount should the account receivable is reported in the December 31, 2020 balance sheet? A. P700,000 B. P850,000 C. P800,000 D. P758,000
Required information [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 88, $42,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 ? Paid the amount due on the note to Fargo Bank at the maturity date. 4. Determine the interest expense recorded in Year 2. Note: Do not round your Intermediate calculations. Use 360 days a…
show solution, thanks!
EX.06.144 On April 7, Wilhelm, Inc. sold goods for $50,000 and accepted a 10%, 60-day note. On April 22, the company sold the note to a bank at a 13% discount rate. Required:Compute the amount of interest revenue and the loss on sale of the note. Assume a 360-day year. Round your answers to two decimal places. Interest revenue $ Loss on sale of note $
6. Celeste Company provided the following transactions, among others, for the current year. 1 Sold merchandise to XYZ Company for P500,000, terms 2/10, n/30. 2 the above account to Solid Finance under the following agreement June 1 Commission based on gross amount 5%. Hold back based on gross amount 25%. 9 Granted XYZ Company a credit allowance of P50,000 for damage in the shipment. 11 XYZ Company paid in full its account to Solid Finance. 15. Final settlement was made with Solid Finance. How much was the total amount received from the factoring? а. 500,000 b. 350,000 c. 416,000 d. 375,000
5. MASAKIT SA BUNGO CORPORATION 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 50,000 award credits. The fair value of the award credits is reliably measured at P2,000,000. In 2019, the entity sold goods to customers for a total consideration of P9,000,000 including the fair value of the award credits. The total award credits expected to be redeemed are 80% in 2019 and 85% in 2020. The award credits actually redeemed are 15,000 in 2019 and 7,950 in 2020. What is the revenue earned from points in 202O? * a. P600,000 b. P750,000 c. P330,000 d. P318,000
Wraith Inc. factored without recourse its accounts receivable amounting to P100,000. Wraith received P82,000 as cash advance from the bank and the bank withheld 3,000 as contingency for uncollectible accounts. The bank charged Wraith P15,000 as finance service fee for factoring. How much is the loss on factoring from the transaction? a. Zero b. 10,000 c. 15,000 d. 20,000
Show solutions Hope World Company factored Php600,000 of accounts receivable to Hangsang Company on July 1, 2021. Control was surrendered by Hope World. Hangsang accepted the receivables subject to recourse for nonpayment. Hagsang assessed a fee of 2% and retains a holdback equal to 5% of the accounts receivable. the fair value of the recourse obligation is Php12,000. 17. Hope World will receive and record cash of a.Php546,000 b. Php558,000 c. Php570,000 d. Php576,000 What amount of loss on factoring should Hope World company recognize? a. None b. 12,000 c. 24,000 d. 42,000
None
Q9
Dineshbhai