Problem 2:JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10box tops of facial soap returned and a remittance of P25. Distribution cost is P10 per towel. The entityestimated that only 60% of the box tops reaching the market will be redeemed. The entity provided thefollowing information:20202021Facial soap sales, P50 per unitTowel purchases, P90 per unitNumber of box tops returned2,500,0002,875,000337,500360,00022,50038,550Requirements:How much net cash did the entity receive (give) with regards to the premium transactions for the yeargiven below? (if net cash outflow, put a negative (-) sign before the numerical figure.A. December 31, 2020B. December 31, 20217.

Cash outflow - P25 Cost of the towel P 90 Distribution expenses - P 10

Problem 2: JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is P10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 2,875,000 Facial soap sales, P50 per unit Towel purchases, P90 per unit 2,500,000 337,500 360,000 Number of box tops returned 22,500 38,550 Requirements: How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash outflow, put a negative (-) sign before the numerical figure. A. December 31, 2020 B. December 31, 2021 7.

Problem 2: JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is P10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 2,875,000 Facial soap sales, P50 per unit Towel purchases, P90 per unit 2,500,000 337,500 360,000 Number of box tops returned 22,500 38,550 Requirements: How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash outflow, put a negative (-) sign before the numerical figure. A. December 31, 2020 B. December 31, 2021 7.

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

Question # 4 Fancie Cosmetics offers its customers a travellers gift set as a premium in exchange for $ 20 if the customer purchases one of the top brand cosmetic makeup kits. The company purchased for cash 2,000 gift sets at $ 25 each. It estimates that 60% of customers will participate in the promotion and that 10% of the amount received from customers relates to the awarded premiums. In 2020, the company sold 3,000 makeup kits at a sales price of $ 80 resulting in sales revenue of $ 240,000. By the end of the year, 1,500 customers took advantage of the promotion. Instructions Prepare the appropriate journal entries assuming that Facie follows ASPE and uses the expense approach. Prepare the appropriate journal entries assuming that Fancie follows IFRS and uses the revenue approach. For this part of the question, assume the selling price includes the offer for the premium.
17. Jolo Corporation wants to revise the sales commission payment scheme. Currently, the 4 sales person receive a monthly salary of P5,000 each and a P5 for every unit sold. The new payment scheme will require the company to pay each sales person a monthly salary of P10,000 and an additional P3 for every unit sold. What is the number of units sold wherein the company will be indifferent between the two payment scheme? OA. 10,000 units OB. 8,571 units O C. 2,500 units OD. None of the above
Boost inc sells vitamin supplements to customers with an unconditional sales return if they are not satisfied. The sales return extends 90 days. On May 12, 2023, High Country Integrated health purchases $4,000 of products with a cost of $2,000. Based on the company's prior experience, estimated returns are 20%. The journal entry to record the expected sales return and cost of goods sold includes a
Your answer is partially correct. Nash Taco Palace sells 320 gift cards at $60 per gift card and 160 of the gift cards are redeemed by year-end. Nash estimates that it will have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List oll debit entries before credit entries. Round intermediate calculations to 4 decimal places, eg. 0.2456 and final answers to 0 decimal places, eg. 5,125) Account Titles and Explanation Unearned Gift Card Revenue Sales Revenue Sales Revenue (Breakage) eTextbook and Media. Debit Credit 9600
Flint Taco Palace sells 280 gift cards at $50 per gift card and 140 of the gift cards are redeemed by year-end. Flint estimates that it wi have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, eg. 0.2456 and final answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Cash Unearned Gift Card Revenue Subscriptions Revenue. Debit 14000 Credit 7000 7000
6. SPIDER MAN Bottling Corporation embarked on a promotional program whereby a can opener costing P13 each is given away for 10 bottle crowns plus P5. SPIDER MAN also pays P2 per can opener for handling and shipping cost. SPIDER MAN estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to P5,000,000; Can openers bought for giveaways - 15,000 units amounting to P195,000; Can openers distributed to customers - 10,0o00 units. At the close of the first year, how much should SPIDER MAN recognize as estimated liability for promotional items outstanding? *
(Customer Loyalty Program) Martz Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2017, customers purchase products for $300,000 (with a cost of $171,000) and earn 30,000 points redeemable for future purchases. Martz expects 25,000 points to be redeemed. Martz estimates a standalone selling price of $2.50 per point (or $75,000 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Martz concludes that the points are a separate performance obligation.Instructions(a) Determine the transaction price for the product and the customer loyalty points.(b) Prepare the journal entries to record the sale of the product and related points on July 2, 2017.(c) At the end of the first reporting period (July 31, 2017), 10,000 loyalty…
Show the solution in good accounting form Mary Corporation has a branch in Caloocan. During 2021, the home office shipped to the branch supplies costing P156,000 at a billed price of 30% above cost. The inventories of supplies at the branch were as follows: January 1, 2021 P110,000; December 31, 2021 128,000. On December 31, 2021, the home office holds inventories of P112,800 which includes P11,500 held on consignment and which excludes P5,000 inventories out on consignment. How much is the inventories in a combined balanced sheet as of December 31, 2021?
Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases $3000 of products (cost $1500). Assuming that based on prior experience, estimated returns are 10%. The journal entry to record the expected sales return and cost of goods sold includes a O debit to Cash and a credit to Sales Revenue of $3000. O debit to Cost of Goods Sold and credit to Inventory for $1500. O debit to Sales Returns and Allowance of $300 and a credit to Allowance for Sales Returns and Allowances of $150. O credit to Estimated Inventory Returns of $150.
Problem 1. Hobbit Company sold 700,000 boxes of chocolate chip cookies under a new sales promotion program. Each box contains one coupon, which if submitted with P40, entitles the customer to water jug. Hobbit pays P60 per jug and P5 for handling and shipping. Hobbit estimates that 70% of the coupons will be redeemed even though only 250,000 coupons had been processed in 2021. How much should Hobbit report as liability for unredeemed coupons at December 31, 2021?
Golden Gate Novelties (GGN) sells souvenir key chains at the local airport. GGN charges $12.00 per chain. The variable cost for a chain, including the wholesale cost of the chain, packaging, the commission paid to the airport operator, and so on, is $10.40. The annual fixed cost for GGN is $15,000. Required: a. How many cases must Golden Gate Novelties sell every year to break even? Note: Do not round intermediate calculations. b. The owner of GGN believes that the company can sell 12,500 chains a year. What is the margin of safety in terms of the number of chains? a. Break-even point b. Margin of safety chains chains
= p.pptm Pina Company offers a set of building blocks to customers who send in 3 UPC codes from Pina cereal, along with 50¢. The block sets cost Pina $1.30 each to purchase and 70¢ each to mail to customers. During 2020, Pina sold 876,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2020, 87,600 UPC codes were redeemed. Prepare Pina's December 31, 2020, adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) here to search Account Titles and Explanation Premium Expense Premium Liability eTextbook and Media List of Accounts Save for Later ACC341-2022-Ho...xlsx ^ R G 18 6 B music 2.jpeg H N U J 4 8 I M ( 9 K Debit O Alt ) O L KER P P Attempts: 0 of 3 used Submit Answer : Home 3 Credit PrtSc { [ End + / 11 Ctrl Rain off and on Insert 1 PgUp 4 ^4x A Delete Backspace 7 Enter Shift