GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2021, GoodBuy sold $1,000,000 of gift cards, and $840,000 of the gift cards were redeemed for products. As of December 31, 2021, $30,000 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 2021?
Q: SM Department Store sells gift certificates, redeemable for store merchandise that expires one year…
A: Unearned revenue on December 31, 2021 = Unearned revenue at December 31, 2020 + sales for 2021 -…
Q: In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely…
A: Given information is: Lizzie Shoes’ experience, gift cards that have not been redeemed within 12…
Q: GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2018,…
A: Given information is: GoodBuy sells gift cards redeemable for GoodBuy products either in store or…
Q: In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely…
A: Revenue: The account which is to be credited when a company receives donated assets is the revenue…
Q: Siomai Corp. sells gift certificates redeemable only when merchandise is purchased. The certificates…
A: Unearned revenues are those revenues which are received in advance but not yet earned by the…
Q: Swifty Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops…
A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…
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: In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely…
A:
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: Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount even…
A: Discount period is the time in which creditors are allowed to make payments along with some…
Q: Escargot Inc. is a 5-star restaurant in Cincinnati The restaurant sells 500 gift cards during…
A: In this case, Company E expects that 12% of the gift cards will not be redeemed out of the totalgift…
Q: Amber gears sells gears to HTC Car Repair during 2018.It offers rebates of 2% on purchases up to…
A: Normal purchase made in parts during the year= $300,000 Purchases on March 25, 2018= $74,000 of…
Q: WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires one…
A: Unearned revenues are those revenues which are received in advance by the business but that will be…
Q: CircuitTown commenced a gift card program in January 2021 and sold $13,150 of gift cards in January,…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Escargot Inc. is a 5-star restaurant in Cincinnati. The restaurant sells 500 gift cards during…
A: Unearned revenue is cash gotten by an individual or organization for an assistance or item that…
Q: In Lizzie Shoes' experience, gift cards that have not been redeemed within 12 months are not likely…
A: Accrual is an basic accounting principle where it was related with recording of revenues and various…
Q: Compute Premium Liability in 2019.
A: Premium Liability is the expected amount of redemptions yet to be for the year 2019 Premium…
Q: Kylie Co. is a VAT-registered merchandising company. Kylie buys products from a local supplier for…
A: VAT Payable is the amount of Value added tax that is payable to the government by an individual. VAT…
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: Skate City Corporation sells skateboard products and also operates an indoor skating facility.…
A: Introduction: The act of recording or keeping track of any financial or non-financial action is…
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: Cavite Mall grants its customers one reward point for each P100 sales for the year 2021 only. Each…
A: Total points = $2500000 Given that 50% of granted points are redeemed i.e = 50%(P2500000) = P1250000…
Q: 0 sale. Each point is redeemable in the form of peso discount. The customer can earn 1 point for…
A: The operating activities are the sale of goods and services and rent revenue. Unearned revenue is…
Q: 4. WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires…
A: Unearned revenue is the amount of revenue which is received in advance but not yet earned by the…
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: CircuitTown commenced a gift card program in January 2021 and sold $10,000 of gift cards in January,…
A: 1) Sold $ 10000 of gift cards in January 2021 $ 6000 revenue from gift card redemption. And $ 4000…
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: On January 1, 2020, the balances of Jennifer Cakes and Pastries accounts receivable and allowance…
A: Following is the answer to the given question
Q: Oriole Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops…
A: Box tops yet to be received=Total boxes sold×60%-Redeemed by customers=795,000×60%-356,000=121,000
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: 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: Sleepy Co. has sold gift cards for many years and, based on its experience, 10 % of the gift cards…
A: In case of gift cards, revenue recognition principle says that revenue should be recognized when the…
Q: 1. WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: During 1998, Day Company sold 500,000 boxes of cake mix under a new sales promotional program. Each…
A: Cost per coupon = Cost of pan + handling and shipping charges = P5 + 0.50 = P5.50
Q: Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third…
A: Cash collected on 2021 = installment of jet- ski sold in 2020 + installment of jet ski sold in 2021
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: How much is the expense to be recognized by ABC in 2021?
A: For every P200 spent - 1 point is granted For every P1 spent - 1/200 i.e.0.005 point is granted…
Q: How much is the Unearned Revenue for Unredeemed Premiums at December 31, 2021? 2. How much is the…
A: Sales revenue: Sales revenue is the income earned by the company by selling goods and services.…
Q: During 1998, Day Company sold 500,000 boxes of cake mix under a new sales promotional program. Each…
A: Liability means the amount which is to be paid to an outsider by business. Liability for unredeemed…
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: Bavarian Bar and Grill opened for business in November 2018. During its first two months of…
A: Current liability: Current liability is a debt that the companies need to pay the debts from…
Q: Dowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2021, to Bassadrome.…
A: Bill and hold sales recognize revenue: Customer use to purchase goods and requests the seller to…
Q: 4. WALNUT Department Store sells gift certificates, redeemable for store merchandise that expires…
A: Unearned revenue is the amount of revenue that is received in advance but not yet earned by the…
Q: On December 1, 2021 Cardinal Company, a garden retailer, purchased $20,000 of corn seed, terms 2/10,…
A: Solution In the given case ,C company has a chance to get 2 % discount if payment made with in 10…
Q: Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third…
A: Answer - Working Note : Calculation of Net Installment Receivable for 2020 : Particulars…
Q: Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the…
A: Meaning of Journal Entries: Journal entries are the record of business…
Q: A company offers a cash rebate of P1 on each P4 package of light bulbs sold since 2015.…
A: Cash rebate is the form of discount that is being provided to customers on purchase of products.…
Q: In 2015, S began selling S Company gift cards. During 2015, S sold $4,600,000 of these gift cards.…
A: A journal entry is prepared by the company to record the non-economic & economic transactions of…
GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2021, GoodBuy sold $1,000,000 of gift cards, and $840,000 of the gift cards were redeemed for products. As of December 31, 2021, $30,000 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 2021?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- MOA sells gift cards that are redeemable only at its stores. The company's policy is to record the redemption amount as realized. MOA sold P1,800,000 worth of gift certificates in 2019 and redeemed P1,560,000 worth of gift certificates. The value of outstanding gift certificates as of January 1, 2019 is P520,000. The company's gross profit margin is 40%. What is the obligation for outstanding gift cards at the end of the fiscal year on December 31, 2019?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 isIn Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $19,150 during August 2021. $3,400 of cards were redeemed in September 2021, $3,610 in October, $2,750 in November, and $2,670 in December 2021. In 2022 an additional $1,850 of cards were redeemed in January and $535 in February.How much gift card revenue associated with the August 2021 gift card sales would Lizzie get to recognize in 2021 and 2022?
- Crane Bakery began selling gift cards in 2025. Based on industry norms, they expect that 30% of the gift cards will not be redeemed. In 2025, the bakery sold gift cards with a value of $2000. During that period, gift cards with a value of $500 were redeemed. The amount of revenue that Crane will recognize in 2025 with regard to the gift cards is O $650 O $500 O $2000 O $714In Lizzie Shoes' experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $19,500 during August 2021. $5,000 of cards were redeemed in September 2021, $3,390 in October, $3,080 in November, and $2,380 in December 2021. In 2022 an additional $1,250 of cards were redeemed in January and $680 in February. How much gift card revenue associated with the August 2021 gift card sales would Lizzie get to recognize in 2021 and 2022?1. IRIS Department Store sells gift certificates that are redeemable only when the merchandise is purchased from its stores. It is the company’s policy to recognize the amount redeemed as realized. During 2019, ABC Department Store sold gift certificates amounting to P1,800,000 and redeemed gift certificates worth P1,560,000. Gift certificates outstanding at January 1, 2019, is P520,000. The company’s gross profit rate is 40%. What is the liability for outstanding gift certificates at December 31, 2019? 2. On January 1, 2020, HEYO Company issued P 10,000,000 convertible bonds with a stated rate of 12% at 110. The principal of the bonds is payable on December 31, 2024. Interest on the bonds is payable annually starting December 31, 2020. Each P 5,000 bond is convertible into 20 ordinary shares of P 50 par. Without the bond conversion privilege, the bonds would have sold to yield 10%. On December 31, 2021, after paying periodic interests, half of the bonds issued were converted to…
- James Company has an arrangement with with Jorge Company that operates a customer loyalty program. The entity grants loyalty points of Jorge Company when they spend a specified amount on purchases. Program members can redeem their points with Jorge Company. The points have no expiry date. During 2020, the customers earned 60,000 points. The stand-alone selling price of each loyalty point is estimated at P20. The sales during 2020 amounted to P6,800,000 based on stand-alone selling price. According to Jorge Company: On December 31, 2020, 28,800 points have been redeemed in exchange for purchases. In 2021, customers have redeemed 9,000 points. How much is the revenue to be recognized by James in 2020?CircuitTown commenced a gift card program in January 2021 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $6,000 for the January gift cards sold, $4,500 for the February cards, and $4,000 for the March cards. CircuitTown considers gift cards to be “broken” (not redeemable) 10 months after sale. Required:1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021?2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards.3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021?4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021?James Company has an arrangement with with Jorge Company that operates a customer loyalty program. The entity grants loyalty points of Jorge Company when they spend a specified amount on purchases. Program members can redeem their points with Jorge Company. The points have no expiry date. During 2020, the customers earned 60,000 points. The stand-alone selling price of each loyalty point is estimated at P20. The sales during 2020 amounted to P6,800,000 based on stand-alone selling price. According to Jorge Company: On December 31, 2020, 28,800 points have been redeemed in exchange for purchases. In 2021, customers have redeemed 9,000 points. How much is the initial unearned customer loyalty points to be recognized by James?
- CircuitTown commenced a gift card program in January 2021 and sold $13,150 of gift cards in January, $16,000O in February, and $17,400 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $7,800 for the January gift cards sold, $6,300 for the February cards, and $4,800 for the March cards. CircuitTown considers gift cards to be “broken" (not redeemable) 10 months after sale. Required: 1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021? 2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. 3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021? 4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021? Complete this question by entering your answers in the tabs below. Req 2 Req 1 and 3 and 4…PLEASE ANSWER IT ALL AND I WILL RATE AS HELPFUL. THANK YOU! Dynasty Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Dynasty Company recognizes the unearned revenue as realized. Information for 2019 is as follows: Unearned Revenue, January 1, 2019 P650,000; Gift certificates sold P2,250,000; Gift certificates redeemed P1,950,000; Gift certificates unredeemed for a long time P100,000; Cost of Goods Sold 60%. What amount should be reported as Unearned Revenue on December 31, 2019, following the ruling by the Department of Trade and Industry that gift certificates no longer have an expiration period? Long Live Company entered into a lease agreement for the use of a new machine on January 1, 2020. The lease agreement requires an annual payment of P1,500,000 for five years starting December 31, 2020. Long Live guaranteed a residual value of P711,090 at the end of the contract. The machine will revert to the lessor at the end of five years.…Cinnamon Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 150,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P3,000,000. In 2019, the entity sold goods to customers for a total consideration of P12,000,0000 based on a standalone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 45,000 80% 2020 22,500 90% What is the revenue from points for 2019? What is the revenue from points for 2020?