The Western Canada Luggage Company its customers a gift set if the customer purchases 2 suitcases. Each suitcase sold includes a coupon. The customer must present 2 coupons plus $10 to receive the traveller's gift. The promotional offer expires on May 1, 2022. The following information pertains to the promotional campaign: LC) launched a new promotional campaign on May 2, 25,800 Number of traveller's gift sets purchased by WCLC Price per traveller's gift set purchased by WCLC Number of suitcases sold 8. 60,229 Total number of coupons estimated to be redeemed by customers Number of coupons redeemed by customers by December 31, 2021 45,172 33,880 97 Selling price per suitcase Cost to ship each gift set to the customer 6. Assume that WCLC has a year end of December 31, and follows ASPE. Note that all sales are cash sales. Required: Prepare any journal entries required by WCLC during 2021, including any year-end adjusting journal entries. Ignore cost of goods sold in preparing your entries.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Western Canada Luggage Company (WCLC) launched a new promotional campaign on May 2, 2021. It offers
its customers a gift set if the customer purchases 2 suitcases. Each suitcase sold includes a coupon. The
customer must present 2 coupons plus $10 to receive the traveller's gift. The promotional offer expires on May
1, 2022. The following information pertains to the promotional campaign:
Number of traveller's gift sets purchased by WCLC
Price per traveller's gift set purchased by WCLC
Number of suitcases sold
25,800
8
60,229
45,172
Total number of coupons estimated to be redeemed by customers
Number of coupons redeemed by customers by December 31, 2021
Selling price per suitcase
Cost to ship each gift set to the customer
33,880
97
6.
Assume that WCLC has a year end of December 31, and follows ASPE. Note that all sales are cash sales.
Required:
Prepare any journal entries required by WCLC during 2021, including any year-end adjusting
journal entries. Ignore cost of goods sold in preparing your entries.
Transcribed Image Text:The Western Canada Luggage Company (WCLC) launched a new promotional campaign on May 2, 2021. It offers its customers a gift set if the customer purchases 2 suitcases. Each suitcase sold includes a coupon. The customer must present 2 coupons plus $10 to receive the traveller's gift. The promotional offer expires on May 1, 2022. The following information pertains to the promotional campaign: Number of traveller's gift sets purchased by WCLC Price per traveller's gift set purchased by WCLC Number of suitcases sold 25,800 8 60,229 45,172 Total number of coupons estimated to be redeemed by customers Number of coupons redeemed by customers by December 31, 2021 Selling price per suitcase Cost to ship each gift set to the customer 33,880 97 6. Assume that WCLC has a year end of December 31, and follows ASPE. Note that all sales are cash sales. Required: Prepare any journal entries required by WCLC during 2021, including any year-end adjusting journal entries. Ignore cost of goods sold in preparing your entries.
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