SM Department Store sells gift certificates, redeemable for store merchandise that expires one year after their issuance. SM has the following information pertaining to its gift certificates sales and redemptions: Unearned at December 31, 2020 - ₱600,000; 2021 sales - ₱2,000,000; 2021 redemptions of prior-years sales -₱200,000; 2021 redemptions of current-year sales-₱1,400,000. In its December 31, 2021 statement of financial position, what amount should SM report as unearned revenue? A. ₱ 800,000 B. ₱ 1,000,000 C. ₱ 400,000 D. ₱ 600,000
SM Department Store sells gift certificates, redeemable for store merchandise that expires one year after their issuance. SM has the following information pertaining to its gift certificates sales and redemptions: Unearned at December 31, 2020 - ₱600,000; 2021 sales - ₱2,000,000; 2021 redemptions of prior-years sales -₱200,000; 2021 redemptions of current-year sales-₱1,400,000. In its December 31, 2021 statement of financial position, what amount should SM report as unearned revenue? A. ₱ 800,000 B. ₱ 1,000,000 C. ₱ 400,000 D. ₱ 600,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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SM Department Store sells gift certificates, redeemable for store merchandise that expires one year after their issuance. SM has the following information pertaining to its gift certificates sales and redemptions: Unearned at December 31, 2020 - ₱600,000; 2021 sales - ₱2,000,000; 2021 redemptions of prior-years sales -₱200,000; 2021 redemptions of current-year sales-₱1,400,000.
In its December 31, 2021
A. ₱ 800,000
B. ₱ 1,000,000
C. ₱ 400,000
D. ₱ 600,000
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