Victoria Company sells bedsheets for P3,000 per set. There is a promotion wherein if a customer buys 4 sets in a single transaction, the customer receives a coupon for one additional set for free. Customers should go to the entity's website, fill out a request form, input the coupon number and submit online before the expiration date. It is expected that 80% of the coupons will be redeemed. During 2022, the entity sold 1,000 sets at P3,000 per set or P3,000,000. During 2023, the entity delivered 75 free additional sets. Compute the deferred revenue from coupons on December 31, 2023.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Victoria Company sells bedsheets for P3,000 per set. There
is a promotion wherein if a customer buys 4 sets in a single
transaction, the customer receives a coupon for one
additional set for free. Customers should go to the entity's
website, fill out a request form, input the coupon number
and submit online before the expiration date. It is expected
that 80% of the coupons will be redeemed.
During 2022, the entity sold 1,000 sets at P3,000 per set or
P3,000,000. During 2023, the entity delivered 75 free
additional sets.
Compute the deferred revenue from coupons on
December 31, 2023.
Transcribed Image Text:Victoria Company sells bedsheets for P3,000 per set. There is a promotion wherein if a customer buys 4 sets in a single transaction, the customer receives a coupon for one additional set for free. Customers should go to the entity's website, fill out a request form, input the coupon number and submit online before the expiration date. It is expected that 80% of the coupons will be redeemed. During 2022, the entity sold 1,000 sets at P3,000 per set or P3,000,000. During 2023, the entity delivered 75 free additional sets. Compute the deferred revenue from coupons on December 31, 2023.
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