During December 2023, Soft Skin Ltd. sells $20,000 of gift cards to customers. From reliable past experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In January 2024, $2,000 of these cards is redeemed for merchandise with a cost of $1,500. In February 2024, a further $10,000 of these cards is redeemed for merchandise with a cost of $8,000. The company uses a perpetual inventory system and has a February 28 year end Instructions Prepare the journal entry needed for December 2023. Prepare the journal entry needed for the January 2024 redemptions. Round to the nearest dollar. Prepare the journal entry needed for the February 2024 redemptions. Round to the nearest dollar. What amount, if any, will appear on the SFP concerning gift cards at February 28, 2024?

During December 2023, Soft Skin Ltd. sells $20,000 of gift cards to customers. From reliable past experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In January 2024, $2,000 of these cards is redeemed for merchandise with a cost of $1,500. In February 2024, a further $10,000 of these cards is redeemed for merchandise with a cost of $8,000. The company uses a perpetual inventory system and has a February 28 year end Instructions Prepare the journal entry needed for December 2023. Prepare the journal entry needed for the January 2024 redemptions. Round to the nearest dollar. Prepare the journal entry needed for the February 2024 redemptions. Round to the nearest dollar. What amount, if any, will appear on the SFP concerning gift cards at February 28, 2024?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 59P

See similar textbooks

Similar questions

H9.C6 On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and malls a new one from Merchandise Inventory to the customer. The company's cost per new razor Is $20 and its retall selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 105 razors for $7,875 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 razors that were returned under the warranty. December 16 Sold 220 razors for $16,500 cash. December 29 Replaced 30 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 150 razors for $11, 250 cash. January 17 Replaced 50 razors that were returned under the warranty. January 31 Recognized warranty expense related to January…
GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2024, GoodBuy sold $1,040,000 of gift cards, and $900,000 of the gift cards were redeemed for products. As of December 31, 2024, $33,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards will never be redeemed. How much gift card revenue should GoodBuy recognize in 2024?
4. A business sells 5,000 appliances at P8,000 each, which carry a one-year repair warranty. If minor repairs were to be required to appliances sold in 2022, the repair cost would be P600 each. If major repairs were needed on all goods sold, the cost would be P1,500 each. It is estimated that 40% of goods sold in 2022 will have no defects, 45% will have minor defects, and 15% will have major defects. What amount of provision on product warranty should the company recognize for 2022?
ABC Company received a P1,800,000, 90-day, 12% note from a customer as payment for goods sold on August 31, 2020. On September 30, 2020, ABC Company discounted the note to Rang-ay Bank at 15% due to dire cash need. How much is loss on discounting to be recorded by ABC Company? A. P10.950 B. P46,350 C. P10,350 D. P14,850
Cullumber Bakery began selling gift cards in 2025. Based on industry norms, they expect that 40% of the gift cards will not be redeemed. In 2025, the bakery sold gift cards with a value of $1000. During that period, gift cards with a value of $250 were redeemed. The amount of revenue that Cullumber will recognize in 2025 with regard to the gift cards is
At December 31, 2021, Suo’s Boutique had 2,000 gift certificates outstanding, which had been sold to customers during 2021 for P50 each. Sue’s operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 2,000 outstanding gift certificates should be deferred at December 31, 2021? a. P0 b. P40,000. c. P60,000. d. P100,000.
An entity, a grocery retailer, operates a customer loyalty program. The entity grants program members loyalty points when they spend s specified amount on groceries. The points have no expiry date. During 2022, the sales amounted to 7,000,000.00 based on stand -alone selling price. During the year, the entity granted 10,000 points. But management expected that only 80% or 8,000 points will be redeemed. The stand alone selling price of each loyalty points is estimated at P100.On December 31, 2022, 4,800 points have been redeemed. In 2023, management revised its expectations and now expected that 90% or 9,000.00 will be redeemed altogether. During 2021, the entity redeemed 2,400 points.What amount should be reported as sales revenue including the revenue earned from points for 2022? What is the revenue earned from loyalty points for 2023?
In 2015, S began selling S Company gift cards. During 2015, S sold $4,600,000 of these gift cards. During 2015, customers redeemed $2,950,000 of S’s gift cards. There are no expiration dates on S’s gift cards. S estimates that 4% of its gift cards sold will never be redeemed. S operates in jurisdictions where they are not required to remit unredeemed gift card balances to government agencies under unclaimed property laws. S only prepares AJEs every 12-31. Prepare the 2015 entries S made: to reflect gift card sales. to reflect gift card redemptions. to record 12-31’s AJE for estimated gift card breakage income.
58. During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900 per sack with delivery to be made in 2022. On December 31, 2021, the price of rice had fallen to P850 per sack. On May 9, 2022, Tartarus Company accepts delivery of rice when the price is P880 per sack. What amount of purchases should be recorded on May 9, 2022?
Easy Company sells directly to retail customers. On January 1, 2020, the balance of the accounts receivable was P2,070,000 while the allowance for doubtful accounts was a credit of P78,000. The following data are gathered. Credit Sales Writeoffs Recoveries2017 11,100,000 260,000 22,0002018 12,250,000 295,000 37,0002019 14,650,000 300,000. 36,0002020 15,000,000. 310,000 42,000Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year.Required:a. What is the percentage of credit sales to be used in computing doubtful accounts expense for 2020?b. What amount should be reported as doubtful expense for 2020?c. What amount should be reported as allowance for doubtful accounts on December 31, 2020?
62 In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300 per product). The merchandise is to be delivered to M&H over the next 6 months. After 60 merchandises were delivered, the contract is modified and Commonlo promises to deliver 80 more products for an additional P21,600 (P270 per station). At year-end, Commonlo delivered an additional 90 products. All sales are cash on delivery. How much revenue will be recognized on the contract for the year 2021?
December 5, 2019, PQR Company sold P500,000 worth of inventories with trade discounts of 10%, 15%,25%, terms: 2/10, n/30. How much is debited to accounts receivable if the company uses allowancemethod in accounting for its cash discounts? P286,875.00 P490,000 P245,000 P281,137.50

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

Instructions

Prepare the journal entry needed for December 2023.

Prepare the journal entry needed for the January 2024 redemptions. Round to the nearest dollar.

Prepare the journal entry needed for the February 2024 redemptions. Round to the nearest dollar.

What amount, if any, will appear on the SFP concerning gift cards at February 28, 2024?