ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P 70. To help promote the product, the management of ABC is offering a special Accountanteareusable cup to each customer for every 10 specially marked bottles of Accountantea plus P 10. ABC estimates that out of the 700,000 bottles of Accountantea sold during 2020, only 45% of the bottle caps will be redeemed. For the year 2020, 35,000 Accountantea reusable cups were purchased by the company at a total cost of P 1,050,000. These 35,000 Accountantea reusable cups have a total sales value of P 1,750,000. A total of 30,000 Accountantea reusable cups were distributed to customers during the year 2020. In accordance with IFRS 15, how much additional sales should ABC recognize upon distribution of the 30,000 cups? A. P 1,453,287.20 B. P 47,474,048.44 C. P 300,000 D. P 1,753,287.20
ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P 70. To help promote the product, the management of ABC is offering a special Accountanteareusable cup to each customer for every 10 specially marked bottles of Accountantea plus P 10. ABC estimates that out of the 700,000 bottles of Accountantea sold during 2020, only 45% of the bottle caps will be redeemed. For the year 2020, 35,000 Accountantea reusable cups were purchased by the company at a total cost of P 1,050,000. These 35,000 Accountantea reusable cups have a total sales value of P 1,750,000. A total of 30,000 Accountantea reusable cups were distributed to customers during the year 2020.
In accordance with IFRS 15, how much additional sales should ABC recognize upon distribution of the 30,000 cups?
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