Excellent Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P20.Data with respect to the premium offer are summarized below: SalesPurchase of premium, P50 per plate Number of plates distributed as 3,800,000 4,000,000 380,000 560,000 premium 4,500 8,000 Estimated number of plates to be distributed in subsequent period 2,500 3,500 Distribution cost P10 per plateRequired:Prepare journal entries that would be made in 2020 and 2021 to record sales, premium purchases and redemptions, and year-end adjustments. 6:19 РМ O:74PDFities and ExerdiOpen with1. Excellent Company manufactures a product that is packaged and sold. A plateis offered to customers sending in three wrappers accompanied by a remittanceof P20.Data with respect to the premium offer are summarized below:Sales3,800,0004,000,000Purchase of premium, P50 per plateNumber of plates distributed as380,000560,000premium4,5008,000Estimated number of plates to bedistributed in subsequent periodDistribution cost P10 per plate2,5003,500Required:Prepare journal entries that would be made in 2020 and 2021 to record sales,premium purchases and redemptions, and year-end adjustments.2. Sony Company is a regional media reseller. As a promotion, it offered P50 cashrebate on specific CDs. Customers must mail in a proof of purchase seal fromthe package plus the cash register receipt to receive the rebate. Experiencesuggests that 80% of the rebates will be claimed.Twenty thousand of the CDs were sold in the current year. Total rebates tocustomers in the current year amounted to P500,000.Required:Prepare appropriate journal entries for the current year to recognize the cashrebate program.3. Erika Company operates a customer loyalty program. The entity grants loyaltypoints for goods purchased.The loyalty points can be used by the customers in exchange for goods of theentity. The points have no expiry date.During 2020, the entity issued 50,000 award credits and expects that 80% ofthese award credits shall be redeemed.The stand-atone setting* the award credits granted is refiably measuredat P1.000.000Page8the entity sold goods to customers for a total onsideration ofP7,000,000 based on stand-alone selling price.The award, credies dseredaderetalruaredits exnected to be15 6:19 PM O74Company is a rePDF|on specific CDs Open with promotion, it offere 1 u50 cashthe package plus the cash register receipt to receive the rebate. Experiencesuggests that 80% of the rebates will be claimed.a proof of purcha., se . fromTwenty thousand of the CDs were sold in the current year. Total rebates tocustomers in the current year amounted to P500,000.Required:Prepare appropriate journal entries for the current year to recognize the cashrebate program.3. Erika Company operates a customer loyalty program. The entity grants loyaltypoints for goods purchased.The loyalty points can be used by the customers in exchange for goods of theentity. The points have no expiry date.During 2020, the entity issued 50,000 award credits and expects that 80% ofthese award credits shall be redeemed.The stand-alone selling price of the award credits granted is reliably measuredat P1,000,000.In 2020, the entity sold goods to customers for a total consideration ofP7,000,000 based on stand-alone selling price.The award credits redeemed and the total award credits expected to beredeemed each year are as follows:Expected to beRedeemedRedeemed202015,00080%7,9502,550202185%202285%202315,00090%Required:Prepare journal entries from 2020 to 2023.overage AssessmentAssessment will be uploaded on Google Classroom.PagePrenared by:15译

The following transactions are journalized to show the calculations in the records of Excellent…

Answered: Excellent Company manufactures a…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q