SM Department store sells gift certificated, redeemable for store merchandise that expires one year after their issuance. SM has the following information pertaining to its gift certificate sales and redemptions: Liability for Gift Certificates Outstanding at Dec. 31, 2021 P 400,000 2022 Sales 1,500,000 2022 redemptions of prior-year’s sales 150,000 2022 redemptions of current-year’s sales 1,250,000 How much is the balance of liability for gift certificate at the end of 2022?
SM Department store sells gift certificated, redeemable for store merchandise that expires one year after their issuance. SM has the following information pertaining to its gift certificate sales and redemptions: Liability for Gift Certificates Outstanding at Dec. 31, 2021 P 400,000 2022 Sales 1,500,000 2022 redemptions of prior-year’s sales 150,000 2022 redemptions of current-year’s sales 1,250,000 How much is the balance of liability for gift certificate at the end of 2022?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 33E
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SM Department store sells gift certificated, redeemable for store merchandise that expires one year after their issuance. SM has the following information pertaining to its gift certificate sales and redemptions:
Liability for Gift Certificates Outstanding at Dec. 31, 2021 |
P 400,000 |
2022 Sales |
1,500,000 |
2022 redemptions of prior-year’s sales |
150,000 |
2022 redemptions of current-year’s sales |
1,250,000 |
How much is the balance of liability for gift certificate at the end of 2022?
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