To stimulate the sales of its Alladin breakfast cereal, Loptien Company places 1 coupon in each box. 5 coupons are redeemable for apremium consisting of a children's hand puppet. In 2026, the company purchases 40,000 puppets at $1.50 each andsells 480,000 boxes of Alladin at $3.75 a box. From its experience with other similar premium offers, the company estimates that 40%of the coupons issued will be mailed back for redemption. During 2026, 115,000 coupons are presented for redemption.Prepare the journal entries that should be recorded in 2026 relative to the premium plan. (If no entry is required, select "NoEntry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amountis entered. Do not indent manually. List all debit entries before credit entries.)Account Titles and ExplanationPremium InventoryCash(To record purchase of puppets)CashSales Revenue(To record the sales)Premium ExpensePremium Inventory(To record redemption of coupons)Premium ExpensePremium Liability(To record a liability for premiums)Debit60000180000028750163250Credit60000180000028750163250

Journal entry:The recording of the business transactions in the books of account is known as journal…

Answered: To stimulate the sales of its Alladin…

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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Jeff & Bezos is a fresh groceries delivery company. The company has access to borrowing funds at a pre-tax rate of 8 % per year. Jeff & Bezos pays income taxes using 24 % tax rate. The company would like to start using high-speed low-altitude drones to deliver grocery purchases directly to residential customers' backyards. By doing so, the company would be saving $3.2 million pre-tax every single year. Jeff & Bezos is contemplating leasing the drones for a lease term that matches the drones' economic life. It would lease them from a different company, Nets & Flicks, that currently owns the required number of the drones. Doing that would have an estimated pre-tax annual cost of $2,130,000. Nets & Flicks' requirement is that the lease payments are made by Jeff & Bezos at the beginning of each year. Instead of leasing the fleet of the drones, Jeff & Bezos is also contemplating buying them, which would cost the company $9.9 million. If the company chooses to buy them, the drones would be…
Phlight Restaurant is considering a delivery service. The firm expects that sales from the new service will be $150,000 per year. Phlight currently offers a sit-down service with annual sales of $100,000. While many of the delivery sales will be to new customers, Phlight estimates that 60% of their current sit-down customers will switch and use the delivery service. The level of incremental sales associated with introducing the delivery service is closest to: Select one: a. $90,000 b. $150,000 c. $60,000 d. $120,000
Verizon offers to sell cellular phones listing for $100.54 with a chain discount of 15/10/5. Cellular Company offers to sell its cellular phones that list at $104.09 with a chain discount of 25/5. If Irene is to buy seven phones, how much could she save if she buys from the lower-priced company? Note: Do not round intermediate calculations. Round all dollar amounts to the nearest hundredth. Round your final answer to the nearest cent. Amount saved
Solar Shade Inc. currently sells 40,000 basic solar shade devices per year at $60,000 each, and 16,800 custom-made solar shade devices per year at $150,000 each. The company wants to introduce a new portable solar shade to fill out its product line; it hopes to sell 26,000 of these per year at $16,000 each. An independent consultant has determined that if the company introduces the new solar shades, it should boost the sales of its basic solar shades by 6,000 units per year, and reduce the sales of custom-made solar shades by 1,200 units per year. What is the amount to use as the annual sales figure when evaluating this project?
Walmart buys Timex watches from Timex at $100.00. The markup rate at Walmart is 40%. What was the original markup of the watch? What is Walmart’s Selling Price?
Gonzalez Corporation manufactures a children's bicycle, model CT8. Gonzalez currently manufactures the bicycle frame. During 2023, Gonzalez made 30,000 frames at a total cost of $750,000. Ryan Corporation has offered to supply as many frames as Gonzalez wants at a cost of $23.50 per frame. Gonzalez anticipates needing 33,000 frames each year for the next few years. Required Requirement 1. (a) What is the average cost of manufacturing a bicycle frame in 2023? How does it compare to Ryan's offer? The average cost of $ per frame is than Ryan's offer. (b) Can Gonzalez use the answer in requirement 1a to determine the cost of manufacturing 33,000 bicycle frames? Explain. Gonzalez take the average manufacturing cost in 2023 to determine the total cost of manufacturing 33,000 bicycle frames. The reason is that Requirement 2. Gonzalez's cost analyst uses annual data from past years to estimate the following regression equation with total manufacturing costs of the bicycle frame as the…
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