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2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash  rebate on specific CDs. Customers must mail in a proof of purchase seal from  the package plus the cash register receipt to receive the rebate. Experience  suggests that 80% of the rebates will be claimed.   Twenty thousand of the CDs were sold in the current year. Total rebates to  customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash  rebate program.

2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash  rebate on specific CDs. Customers must mail in a proof of purchase seal from  the package plus the cash register receipt to receive the rebate. Experience  suggests that 80% of the rebates will be claimed.   Twenty thousand of the CDs were sold in the current year. Total rebates to  customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash  rebate program.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 21E: Cash Rebates On January 1, 2020, Fro-Yo Inc. began offering customers a cash rebate of 5.00 if the...
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 2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash  rebate on specific CDs. Customers must mail in a proof of purchase seal from  the package plus the cash register receipt to receive the rebate. Experience  suggests that 80% of the rebates will be claimed.  

Twenty thousand of the CDs were sold in the current year. Total rebates to  customers in the current year amounted to P500,000.

Required:

Prepare appropriate journal entries for the current year to recognize the cash  rebate program.

2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash rebate on specific CDs. Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program.
Transcribed Image Text:2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash rebate on specific CDs. Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program.
2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash rebate on specific CDs. Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program.
Transcribed Image Text:2. Sony Company is a regional media reseller. As a promotion, it offered P50 cash rebate on specific CDs. Customers must mail in a proof of purchase seal from the package plus the cash register receipt to receive the rebate. Experience suggests that 80% of the rebates will be claimed. Twenty thousand of the CDs were sold in the current year. Total rebates to customers in the current year amounted to P500,000. Required: Prepare appropriate journal entries for the current year to recognize the cash rebate program.
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