SNM Bhd offers coupons to its customers in an effort to increase its annual sales. The company places 1 coupon in each packet of Product A. Customers can exchange 10 coupons for 1 decorative clock. In 2018, SNM Bhd purchases in cash 2,500 units of decorative clock at RM10.00 each. The company also sold 50,000 units of Product A at a price of RM20.00 each. SNM Bhd estimated that 40% of the coupons will be redeemed. As of 31 December 2018, only 15,000 coupons were presented for redemption. REQUIRED: Prepare the necessary journal entries for SNM Bhd during the year 2018. Please show your calculations. (a) Determine the asset and liability that relate to the above transactions that would appear on 31 December 2018 Statement of Financial Position. (b)

SNM Bhd offers coupons to its customers in an effort to increase its annual sales. The company places 1 coupon in each packet of Product A. Customers can exchange 10 coupons for 1 decorative clock. In 2018, SNM Bhd purchases in cash 2,500 units of decorative clock at RM10.00 each. The company also sold 50,000 units of Product A at a price of RM20.00 each. SNM Bhd estimated that 40% of the coupons will be redeemed. As of 31 December 2018, only 15,000 coupons were presented for redemption. REQUIRED: Prepare the necessary journal entries for SNM Bhd during the year 2018. Please show your calculations. (a) Determine the asset and liability that relate to the above transactions that would appear on 31 December 2018 Statement of Financial Position. (b)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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