In an effort to increase sales, Mill Company inaugurated a sales promotional campaign on June 30, 2020. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost P20 and five coupons must be presented by a customer to receive a premium. The entity estimated that only 60% of the coupons issued will be redeemed. For the six months ended December 31, 2020. the following information is available: Packages of cereal sold Premiums purchased Coupons redeemed 1. What amount should be reported as premium expense for 2020? 2. What is the estimated liability for premium claims outstanding on December 31, 2020? 160,000 12,000 40,000
Q: During 2020, Bart Inc. inaugurated new sales promotional program. For every 10 cereal box tops…
A: Audit: It is a systematic examination of books of accounts of an individual or a firm. It is done by…
Q: In an effort to increase sales, Relay Company inaugurated a sales promotional campaign on June 30,…
A: The liabilities are the amount that company owes to its creditors and due to be paid.
Q: Las Piñas Company includes one coupon in each package of cereal it sells. A towel is offered as a…
A: 2018…
Q: Determine (1) the transaction price for the sale of shredders for January 2020, and (2) the refund…
A: Given information is: In January 2020, a retailer sells 500 paper shredders to customers for $100…
Q: As part of a promotion campaign, Funzy Cereal includes one coupon in each issue of various national…
A: Calculation of promotional expensesCoupon issue = 12,000,000Coupon redeem = (12,000,000 x 4%)/3…
Q: On the back of its cereal boxes, Tiger Cereal Company offers a premium to its customers. The…
A: Step 1 Journal is the part of book keeping.
Q: In an effort to increase sales, DARIO Company inaugurated a sales promotional campaign on June 30,…
A: Liabilities means the obligations and dues which needs to be paid off by the business. Premium…
Q: WET Company includes one coupon in each package of cereal it sells. A towel is offered as a premium…
A: Particulars Number of towels distributed in 2020 50000 Add: Number of towels to be distributed…
Q: ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P…
A: Additional sales means where the other products are sold at less than the market value or purchase…
Q: Prepare journal entry to record the expected sales return and cost of goods sold? Pinpong curtains…
A: Journal entries was the first initial step in recording transactions in the books where every…
Q: In 2019, Rivera Company presented the net income after(40%) tax of P5,520,000 as follows: Average…
A: Answer is option a) 338,462
Q: In an attempt to increase sales, Kingbird, Inc. began a special promotion on September 1, 2021. A…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: MarkosLabs, Inc. sells tattoupées – tattooable toupées for balding men. In 2021, it sold 200…
A: In accordance with IFRS 15, a company recognizes revenue to represent the transfer of promised goods…
Q: Headland Company sells goods to Sage Company during 2017. It offers Sage the following rebates based…
A: Revenue = Gross sales price - Rebate
Q: In 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each box…
A: Introduction - Companies use coupons, discounts, rebates, etc. to increase the sales of their…
Q: In 2019, Ramos Company presented the net income after(40%) tax of P5,520,000 as follows: Average…
A: The Break even point is the best measure to determine the relationship between the cost - profits…
Q: In an effort to increase sales, Mills Company inaugurated a sales promotional campaign on June 30,…
A: The estimated liability for premium claims outstanding is P 224,000
Q: Expense approach. Required: Prepare the journal entries required for 2020 using the Expense…
A: Journal entries refer to the process of collecting and documenting all the data of a company in its…
Q: ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P…
A: SOLUTION EXPLANATION- BOTTLES SOLD 700000 × EXPECTED % OF REDEMPTION 45% BOTTLES TO BE…
Q: weet Publishing Co. publishes college textbooks that are sold to bookstores on the following terms.…
A: Sales returns is the amount or value of goods that are being returned by the customer on account of…
Q: In an effort to increase sales, ABC Company inaugurated a sales promotional campaign on June 30,…
A: Calculation of unredeemed premium: Unredeemed no. of Premium = 4,000
Q: Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts…
A:
Q: The Cold Foods Corp. launched a sales promotion of its new product, Cold Candy. For every six (6)…
A: Journal is known as the first book of entry or the original book of entry Given in the question:…
Q: calculate the maximum level of stock. a. 1120 units b. 1102 units c. 1063 units d. 1302 units
A: EOQ ( Economic Order Quantity)
Q: Ariana Corporation includes two coupons in each box of cereal box and 9 coupons are needed to be…
A: In accounting for premiums and coupons, companies should charge the cost of premiums and coupons to…
Q: Bhd purchased an additional 3,000 boxes of masks from D'Mask. D'Mask then estimated that Topeng…
A: The question deals with IFRS 15 "Revenue from contracts with customers". As per IFRS 15, revenue is…
Q: Husserl Company included a coupon in each box of its cereal. For every 10 coupons returned by a…
A:
Q: On April 2, 2021, Cullumber Company entered into a contract to supply medication to Laxall Drug…
A:
Q: Manual Company sells goods to Nolan Company during 2017. It offers Nolan the following rebates based…
A: Workings: Given values: for 10000 units rebate = 2 %
Q: Good-Deal Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: (Premium Entries) To stimulate the sales of its Alladin breakfast cereal, Loptien Company places 1…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Victoria Company sells bedsheets for P3,000 per set. There is a promotion wherein if a customer buys…
A:
Q: The Georgia Company sells inventory but also allows returns. Georgia sells items for $100 per item.…
A: The transaction, which is measurable in monetary terms, is an economic event with a third party…
Q: Brown crop sells TV products. In order to attract more consumers, Brown corp offers 1 unit of bag…
A: Explanation below
Q: In 2019, Dayao Company presented the net income after(40%) tax of P5,520,000 as follows: Average…
A: Contribution margin per unit = Sales price - total variable cost = 200 - (100 + 20)…
Q: LAXUS DREYAR Co. inaugurated a sales promotional campaign on September 1, 2020 in its desire to…
A: In this Question, we will have to provide for contingent liability related to to Premium claims…
Q: In January 2020, a retailer sells 200 paper shredders to customers for $100 each. The terms of the…
A:
Q: SoccerHawk Merchandise Inc. enters into a 6-month contract to sell soccer balls to City Soccer. The…
A: 1.This particular contract is a “complete unperformed contract” on the date of signing the contract…
Q: In 2019, Dela Cruz Company presented the net income after(40%) tax of P5,520,000 as follows: Average…
A: Answer) Calculation of Break-even Sales Volume in 2020 Break-even Sales Volume in 2020 = (Fixed…
Q: ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P…
A: Additional sales means where the other products are sold at less than the market value or purchase…
Q: In an effort to increase sales, Rofix Company began a sales promotion campaign on June 30, 2002.…
A: Premium expense is the amount which is additionally charged more than the par value for the share or…
Q: On July 1, 2021, Sansrival Company started a sales promotional campaign. In each box of cereal sold,…
A: Liability are the claims or obligations which arises due to past, present and future events. These…
Q: Cullumber Publishing Co. publishes college textbooks that are sold to bookstores on the following…
A: Introduction: A journal entry is used to register a commercial transaction in a corporation's…
Q: On 2009, Jhet Enterprises sold 485,000 boxes of cereals under a promotional program. Each box…
A: Redeem: It is the gain of something in replacement for payment.
Q: Sandhill Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 680 pounds of a…
A: Solution:- Findings Sandhill Corporation, a manufacturer of ethnic foods, contracted in 2020 to…
Q: Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are…
A: Estimated sales returns = $3000*10% = $300 Estimated cost of goods returned = $1500*10% = $150
Q: o increase sales, Bramble Inc., a public company following IFRS, implemented a customer loyalty…
A:
Q: Energetic Company includes one coupon in each box of laundry soap it sells for P500 each. A towel…
A: The company recognizes the revenue when earning process is complete. For example, the company…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- In an effort to increase sales, DDD Company inaugurated a sales promotional campaign on June 30, 2020. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost P20 and five coupons must be presented by a customer to receive a premium. The entity estimated that only 60% of the coupons issued will be redeemed. For the six months ended December 31, 2020, the following information is available:Packages of cereal sold - 160,000Premiums purchased - 12,000Coupons redeemed - 40,000 Prepare the necessary journal entries for this transaction (i.e. recognition of the premium expense and its ultimate redemption.)In an effort to increase sales, Alabama Company inaugurated a sales promotional campaign on June 30, 2022. The company placed a coupon redeemable for a plushy in each package of cereal sold. To receive a premium, a customer must present five (5) coupons. Each plushy cost the firm P20, while it can be sold by Alabama for P50 each. The company estimates that only 45% of the coupons issued will not be redeemed. For the six months ended December 31, 2022, the following information are available: Packages of cereal sold 170,000 Selling price per box of cereal P100 Plushies purchased 25,000 Coupons actually redeemed 80,000 (a) How much is the premium expense for the year ended December 31, 2022? (b) How much is the estimated liability for premium claims as of December 31, 2022? (c) How much is the inventory of premium items as of December 31, 2022?In an effort to increase sales, ABC Company inaugurated a sales promotional campaign on June 30, 2021. ABC Company placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost ABC Company P20 and five coupons must be presented by a customer to receive a premium. ABC Company estimated that only 60% of the coupons issued will be redeemed. For the six months ended December 31, 2021 the following information is available. Package of cereal sold Premiums purchased Coupons redeemed 160,000 12,000 40,000 What is the estimated liability for premiums on December 31, 2021?
- In an effort to increase sales, DARIO Company inaugurated a sales promotional campaign on June 30, 2021. DARIO Company placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost DARIO Company P20 and five coupons must be presented by a customer to receive a premium. DARIO Company estimated that only 60% of the coupons issued will be redeemed. For the six months ended December 31, 2021 the following information is available. Package of cereal sold Premiums purchased Coupons redeemed 160,000 12,000 40,000 What is the estimated liability for premiums on December 31, 2021 A. 160,000 B. 384,000 C. 224,000 D. 288,000On July 1, 2021, Sansrival Company started a sales promotional campaign. In each box of cereal sold, Sansrival inserted a coupon redeemable for a premium. To receive a premium, each customer must submit five coupons. Sansrival’s cost for each premium is P6. Sansrival estimated that 60% of the coupons issued would be redeemable. For the six months ended December 31, 2021, the following information is available: Boxes of cereal sold 800,000 Coupons Redeemed 200,000 How much should be the estimated liability for premium claims outstanding at December 31, 2021?Ben and Co. inaugurated a sales promotion campaign on May 31, 2019, whereby Ben placed a coupon in each package of chocolate sold, the coupons being redeemable for a premium. Each premium costs Ben P 50 and a customer to receive a coupon must present five coupons. Ben estimated that only 60 % of the coupon issued would be redeemed. For the seven months ended Dec. 3, 2019, the following information is available: Packages of chocolates sold 400,000 Premium purchased 30,000 Coupons redeemed 100,000 How much is the estimated liability for premium claims outstanding at Dec. 31, 2019? * A.P 180,000 B.P 140,000 C.P 240,000 D.P 100,000
- During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each box contains one coupon, which entitles the customer to a premium that cost the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the customer to receive a premium. SUGA estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional information disclosed that ₱10 per premium is incurred for storage and distribution. Compute for the liability for the unredeemed coupons.During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each box contains one coupon, which entitles the customer to a premium that cost the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the customer to receive a premium. SUGA estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional information disclosed that ₱10 per premium is incurred for storage and distribution. Compute for the premium expense for the year.In packages of its products, Kristine Company includes coupons that may be presented at retail stores to obtain discounts on other Kristine Company products. Retailers are reimbursed for the face amount of coupons plus 20% of that amount for handling costs. Kristine honors requests for coupon redemption by retailers up to three months after the consumer expiration date. Kristine estimates that 80% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Kristine during 2020 is as follows: Consumer expiration date December 31, 2020 Total face amount of coupons issued 5,000,000 Total payments to retailers as of December 31, 2020 3,600,000 What amount should Kristine report as a liability for unredeemed coupons at December 31, 2020? Group of answer choices A. 400,000 B. 2,400,000 C. 1,200,000 D. 1,400,000
- Magtatagumpay Company inaugurated a promotional campaign on January 2, 2029 to promote the salability of their product, Ghost Cereals. Magtatagumpay placed a coupon redeemable for a premium in each package of cereal sold at P200. Each premium, a limited edition water bottle cooling device, costs P25 and 10 coupons must be presented by a customer to receive a premium. Magtatagumpay estimated that only 70% of the coupons issued would be redeemed. For the 6 months ended July 31, 2019, the following transactions occurred: Packages of cereal sold 120,000 Premium purchased 30,000 Coupons redeemed 54,000 How much should be reported as premium expense for coupons on the fiscal year ended July 31, 2029?Magtatagumpay Company inaugurated a promotional campaign on January 2, 2029 to promote the salability of their product, Ghost Cereals. Magtatagumpay placed a coupon redeemable for a premium in each package of cereal sold at P200. Each premium, a limited edition water bottle cooling device, costs P25 and 10 coupons must be presented by a customer to receive a premium. Magtatagumpay estimated that only 70% of the coupons issued would be redeemed. For the 6 months ended July 31, 2019, the following transactions occurred: (Show formula and solution) Packages of cereal sold 120,000 Premium purchased 30,000 Coupons redeemed 54,000 how much should be reported as estimated liability for coupons on the fiscal year ended July 31, 2029? a. 210,000 b. 75,000 c.…Please show your solution in good accounting form In 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each box contains one coupon, which entitles the customer to a premium that costs the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the customer to receive a premium. SUGA estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional information disclosed that ₱10 per premium is incurred for storage and distribution. a. Compute for the liability for the unredeemed coupons. b. Compute for the premium expense for the year.