Sleepy Co. has sold gift cards for many years and, based on its experience, 10 % of the gift cards sold are never redeemed. In February 20x1, Sleepy Co. sold P100,000 worth of gift cards, of which P54,000 were redeemed. Sleepy Co. uses PFRS 15. How much are the (1) total revenue and (2) month-end balance of liability recognized from the sale of gift cards during the month?
Sleepy Co. has sold gift cards for many years and, based on its experience, 10 % of the gift cards sold are never redeemed. In February 20x1, Sleepy Co. sold P100,000 worth of gift cards, of which P54,000 were redeemed. Sleepy Co. uses PFRS 15. How much are the (1) total revenue and (2) month-end balance of liability recognized from the sale of gift cards during the month?
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
Problem 7DQ
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How much are the (1) total revenue and (2) month-end balance of liability recognized from the sale of gift cards during the month?
![Sleepy Co. has sold gift cards for many years and, based on its experience, 10% of the gift cards sold are
never redeemed. In February 20x1, Sleepy Co. sold P100,000 worth of gift cards, of which P54,000 were
redeemed. Sleepy Co. uses PFRS 15. How much are the (1) total revenue and (2) month-end balance of
liability recognized from the sale of gift cards during the month?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F57f6b0b0-cb61-4d2f-a8c8-1d716fe6a488%2Fbdc2fcd1-1cca-4613-9e2c-1e8a6a1ff0da%2Fbit28z_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sleepy Co. has sold gift cards for many years and, based on its experience, 10% of the gift cards sold are
never redeemed. In February 20x1, Sleepy Co. sold P100,000 worth of gift cards, of which P54,000 were
redeemed. Sleepy Co. uses PFRS 15. How much are the (1) total revenue and (2) month-end balance of
liability recognized from the sale of gift cards during the month?
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