At December 31, 2020, Feel Company had 20,000 gift certificates outstanding, which had been sold to customers during 2020 for P500 each. Feel operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 20,000 gift certificates should be deferred at December 31, 2020? *

Q: During 2021, Truffle Company sold 500,000 boxes of hotcakes under a new sales promotional program.…

A: The unredeemed coupon is treated as a liability because the company either has to provide goods or…

Q: SG Inc. has a branch in Boracay established on April 1, 2020. During the year 2020, SG shipped…

A: Branch accounting is a book keeping system in which separate accounts are kept for each…

Q: Teal Company sells goods to Flint Company during 2020. It offers Flint the following rebates based…

A: As per the IFRS, Revenue should be booked only when it is highly probable that the amount will be…

Q: During 2020, ABC Company sold 500,000 boxes of brownies mix under a new sales promotional program.…

A: The question is based on the concept of Financial Accounting.

Q: Oriole Equipment Company sells computers for $1,220 each and also gives each customer a 2-year…

A: 1. Date Account Titles and Explanation Debit Credit 2020 Accounts Receivable ($1220*950)…

Q: Everdeen Company sells computers for P20,000 eachand also gives each customer a 3-year warranty that…

A: Warranty is a form of assurance being given by the seller to the buyer that in case product will…

Q: During 2020, STU Company sold 500,000 boxes of brownies mix under a new sales promotional program.…

A: Net premium expense = Cost of baking pan + Handling and Shipping - Remittance from customer = 50 + 5…

Q: During 2020, Maine Company Sold 50,000 boxes of hotcakes under a new sales promotional program. Each…

A: Total estimated coupons that should be redeemed = 50,000 boxes ×80% = 40,000

Q: Early in 2020, Kingbird Equipment Company sold 600 Rollomatics at $5,400 each. During 2020, Kingbird…

A: An assurance-type warranty guarantees that the product will function as intended. This type of…

Q: On December 28, 2018, Tristar Communications sold 10 units of its new satellite uplink system to…

A: Cash discount: The merchandisers offer a reduction in sales price on initial sales, to accelerate…

Q: SUGA Company sold 485,000 boxes

A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…

Q: REH sells architectural designs to clients. In 2020, the company sold 120 designs for P3,600,000.…

A: Sales revenue: Sales revenue can be defined as the income generated by the company though selling…

Q: ABC Company sold 10 units of goods with a total list price of P30,000 on Jan. 1, 2019. Given that…

A: List price = P 30,000 Trade discount = 5% Cash discount = 10% Discount period = 10 Days Period…

Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…

A: Accounting treatment of Coupon / Premium Most of the business promote the coupon / premium to their…

Q: e year end of GLCN Co is 30 November 2020. The company pays for its electricity by a standing order…

A: The profit and loss account records income and expense on accrual basis that is revenue and…

Q: Employees of Yawa Inc. are given 10% commissions based on sales made every quarter starting January…

A: Total commission expense for the year = P2,900,000 Total commission paid for the year(1st,2nd &…

Q: During 2021, Thurs Company offered a P30 cash rebate coupon to customers who purchased one of its…

A: Thurs Company offered a P30 cash rebate coupon to customers who purchased one of its new lines of…

Q: Thomas Company had the following information related to September 2020: 1) Depreciation on the…

A: Calculation for item 3      Payroll covering wages earned during the last week of September and…

Q: On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to…

A: 1/10, n/30 means, company will given the discount of 1% if the customer will paid the amount within…

Q: Early in 2020,Crow Equipment sold 500 Rollomatics at $6,000 each. During 2020, Crow spent $20,000…

A: a. Prepare journal entries for 2020 for Crow.

Q: Under the expense warranty approach, give the entries to reflect the above transactions (accrual…

A: Warranty liability is a liability account. Warranty expense is part of the operating expenses.

Q: On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to…

A: Given, Sales = 10 units @ $25,000 each Term = 1/10, n/30

Q: During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each…

A: Premium expense refers to the expense of the insurance benefit incurred by the candidate as a part…

Q: Thomas Company had the following information related to September 2020: 1) Depreciation on the…

A: 1. Wages for September month Net Payroll  = 144,000 Salary related to september month only = 144,000…

Q: Moon Co. sells food blenders. During 2019, Moon made 37,000 blenders at an average cost of $80. It…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Moon Co. sells food blenders. During 2019, Moon made 37,000 blenders at an average cost of $80. It…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Blossom Equipment Company sells computers for $1,540 each and also gives each customer a 2-year…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: Early in 2020, Pina Equipment Company sold 400 Rollomatics at $6,000 each. During 2020, Pina spent…

A: Warranty means where the company is undertaking to make good the loss which has been incurred due to…

Q: Carla Vista Company sells goods to Pearl Company during 2020. It offers Pearl the following rebates…

A: A rebate is a type of purchase discount that is provided in the form of a reduction, return, or…

Q: luna Company sold 700,000 boxes of “puto” mix under a new sales promotional program. Each box…

A: Liability is the obligation for the owner of the entity in which certain amounts are to be paid back…

Q: homas Company had the following information related to September 2020: 1) Depreciation on the store…

A: Interest expense for the month=Value of note payable×Interest rate×112

Q: CircuitTown commenced a gift card program in January 2021 and sold $10,000 of gift cards in January,…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: During 2020, Red Company introduced a new product carrying a two-year warranty against defects. The…

A: Warranty liability - It is the liability that company expects to incurred for the repair and…

Q: Thomas Company had the following information related to September 2020: 1) Depreciation on the…

A: Operating income represents the income earned by the company from the operations of the company.

Q: Lee Cheol San Company pays commissions to its sales staff at the rate of 3% of net sales. Sales…

A: Expenses means the amount spent on running the business where as income means the amount earned…

Q: ABC Company sold 10 units of goods with a unit list price of P2,000 on January 1, 2020. Given that…

A: The period given to avail cash discount is 10 days.  Thus 10 days is expired on January 10th. Thus…

Q: During 2020, Day Company sold 500,000 boxes of cake mix under a new sales promotional program. Each…

A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…

Q: At December 31, 2021, Suo’s Boutique had 2,000 gift certificates outstanding, which had been sold to…

A: The company should not record revenue when a gift card is purchased; instead, the purchase of the…

Q: At the end of 2020, Monty Corp. has accounts receivable of $2.95 million and an allowance for…

A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…

Q: On December 28, 2021, Tristar Communications sold 10 units of its new satellite uplink system to…

A: SOLUTION- A sales discount is a reduction in the price of a product or service that is offered by…

Q: Early in 2020, Swifty Equipment Company sold 600 Rollomatics at $5,700 each. During 2020, Swifty…

A: >Warranty is a kind of assurance given to customers that the product being purchased by them will…

Q: At Dec. 31, 2019. H&M Co. had gift certificates outstanding, which had been sold to customers during…

A: As per IAs 115 Revenue Recognization standard the revenue pertaining to outstanding gifts/coupons is…

Q: MOA sells gift cards that are redeemable only at its stores.  The company's policy is to record the…

A: Outstanding obligations or liabilities are those dues or obligations which are related with current…

Q: Moon Co. sells food blenders. During 2019, Moon made 37,000 blenders at an average cost of $80. It…

A: The journal entries to record the stated transactions is provided in the step 1.

Q: Early in 2020, Kingbird Equipment Company sold 600 Rollomatics at $5,400 each. During 2020, Kingbird…

A: Journal entries are the primary reporting of the transactions in the accounting books of an entity.

Q: Prepare 2020 entries for Larkspur assuming that the warranties are not an integral part of the sale…

A: Sales of Rollomatic  = 600 × $5,800  = $3,480,000

Q: EFG Corporation sold 10,500 dishwashers for P1,100 each during 2020. The dishwashers are under…

A: Warranty is a guarantee from the company that the product will be repaired or replaced. The working…

Q: Moon Co. sells food blenders. During 2019, Moon made 37,000 blenders at an average cost of $80. It…

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…

Q: Early in 2020, Pina Equipment Company sold 400 Rollomatics at $ 6,000 each. During 2020, Pina spent…

A: The journal entries are prepared to keep the record of day to day transactions of the business.