PLS SHOW SOLUTION AND ANSWER The entity grants program members one air travel point forProblem 2-22 (IFRS)Jamaica Company, a retailer of electrical goods, participate.in a customer loyalty program operated by an airline.The entity grants program members one air travel point fo· every P1,000 spent on electrical goods:Program members can redeem the points for travel with th.airline subject to availability. The entity pays the airline P60for each point.During the current year, the entity sold electrical goods forconsideration totaling P4,500,000 based on stand-aloneselling price and granted 5,000 points with stand-alone sellingprice of P100 per point.1. What amount should be recognized as product salesrevenue? .a. 4,500,000b. 4,050,000c. 5,000,000d. 2,500,0002. What is the net revenue from points?a. 450,000b. 150,000с. 200,000d. 300,00000

SSP of electrical goods=4500000 SSP of points=5000*100=500000 ratio :- 9:1

The entity grants program members one air travel point for Problem 2-22 (IFRS) Jamaica Company, a retailer of electrical goods, participate, in a customer loyalty program operated by an airline. The entity grants program members one air travel point f. every P1,000 spent on electrical goods: Program members can redeem the points for travel with th. airline subject to availability. The entity pays the airline P6 for each point. During the current year, the entity sold electrical goods f. consideration totaling P4,500,000 based on stand-alone selling price and granted 5,000 points with stand-alone sellin price of P100 per point. 1. What amount should be recognized as product sales revenue? . a. 4,500,000 b. 4,050,000 c. 5,000,000 d. 2,500,000 2. What is the net revenue from points? a. 450,000 b. 150,000 c. 200,000 d. 300,000

The entity grants program members one air travel point for Problem 2-22 (IFRS) Jamaica Company, a retailer of electrical goods, participate, in a customer loyalty program operated by an airline. The entity grants program members one air travel point f. every P1,000 spent on electrical goods: Program members can redeem the points for travel with th. airline subject to availability. The entity pays the airline P6 for each point. During the current year, the entity sold electrical goods f. consideration totaling P4,500,000 based on stand-alone selling price and granted 5,000 points with stand-alone sellin price of P100 per point. 1. What amount should be recognized as product sales revenue? . a. 4,500,000 b. 4,050,000 c. 5,000,000 d. 2,500,000 2. What is the net revenue from points? a. 450,000 b. 150,000 c. 200,000 d. 300,000

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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