EXERCISE I4 Buchanan Company sells gift certificates redeemable only when merchandise is purchased. The certificates h an expiration date of two years after issuance. Upon redemption or expiration, Buchanan recognizes the unearned revenue as realized. Data for the year are as follows: Unearned revenue, January |- P 750,000 Gift certificates sold – P 3,000,000 Gift certificates redeemed - P 2,750,000 Expired gift certificates – P 150,000 Cost of goods sold rate is 75%. REQUIRED: Prepare all journal entries to the foregoing.

EXERCISE I4 Buchanan Company sells gift certificates redeemable only when merchandise is purchased. The certificates h an expiration date of two years after issuance. Upon redemption or expiration, Buchanan recognizes the unearned revenue as realized. Data for the year are as follows: Unearned revenue, January |- P 750,000 Gift certificates sold – P 3,000,000 Gift certificates redeemed - P 2,750,000 Expired gift certificates – P 150,000 Cost of goods sold rate is 75%. REQUIRED: Prepare all journal entries to the foregoing.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.10E

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