In packages of its products, Taurus Company includes coupons that may be presented at retail stores to obtain discounts on other Taurus Company products. Retailers are reimbursed for the face amount of coupons plus 20% of that amount for handling costs. Taurus honors requests for coupon redemption by retailers up to three months after the consumer
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In packages of its products, Taurus Company includes coupons that may be presented at retail stores to obtain discounts on other Taurus Company products. Retailers are reimbursed for the face amount of coupons plus 20% of that amount for handling costs. Taurus honors requests for coupon redemption by retailers up to three months after the consumer expiration date. Taurus estimates that 80% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Taurus during 2019 is as follows:
|
Consumer expiration date |
|
December 31, 2019 |
|
Total face amount of coupons issued |
|
P7,500,000 |
|
Total payments to retailers as of December 31, 2019 |
|
P5,400,000 |
What amount should Taurus report as a liability for unredeemed coupons at December 31, 2019?
- 2,100,000 3,600,000
- 1,800,000 600,000
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- In packages of its products, CUTE COMPANY includes coupons that may be presented at retail stores to obtain discounts on other CUTE COMPANY products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. CUTE COMPANY honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. CUTE COMPANY estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by CUTE COMPANY during 2021 is as follows: Consumer expiration date - December 31, 2021; Total payments to retailers as of December 31, 2021 - ₱165,000; Liability for unredeemed coupons as of December 31, 2021 - ₱99,000. What is the total face amount of coupons issued by CUTE COMPANY Inc. in 2021? A. ₱ 264,000 B. ₱ 400,000 C. ₱ 600,000 D. ₱ 440,000In 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. 1,400,000In packages of its products, JENNIE Inc. includes coupons that may be presented at retail stores to obtain discounts on other JENNIE products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. JENNIE honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. JENNIE estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by JENNIE during 2021 is as follows: Consumer expiration date - December 31, 2021; Total payments to retailers as of December 31, 2021 - ₱165,000; Liability for unredeemed coupons as of December 31, 2021 - ₱99,000. What is the total face amount of coupons issued by JENNIE Inc. in 2021? ₱ 440,000 ₱ 400,000 ₱ 264,000 ₱ 600,000
- In packages of its products, Yolo Company includes coupons that may be presented at retail stores to obtain discounts on other Yolo Company products. Retailers are reimbursed for the face amount of coupons plus 20% of that amount for handling costs.Yolo honors requests for coupon redemption by retailers up to three months after the consumer expiration date. Yolo estimatesthat 80% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Yolo during 2019 is asfollows:Consumer expiration date December 31, 2019Total face amount of coupons issued P7,500,000Total payments to retailers as of December 31, 2019 P5,400,000What amount should Yolo report as a liability for unredeemed coupons at December 31, 2019?Griffin Company mails coupons to consumers which may be presented at a stated expiration date at retail food stores to obtain discounts on certain Griffin products. Retailers are reimbursed for the face value of coupons redeemed, plus 10% of coupon face value as compensation for handling costs.The entity honours requests for coupon redemption by retailers received up to three months after the consumer expiration date. Based on experience, 60% of the coupons issued ultimately are redeemed.The entity provided the following information with respect to two separate series of coupons issued during 2020: Series A Series B Consumer expiration date September 30, 2020 December 31, 2020 Total face value of coupons issued 1,500,000 3,000,000 Total payments to retailers on December 31, 2020 907,500 607,500 What amount should be reported as liability for unredeemed coupons on December 31, 2020?In packages of its products, Rolex Company includes coupons that may be presented at retail stores to obtain discounts on various products. Retailers are reimbursed for the face amount of coupons redeemed plus 15% of that amount for handling cost. The Company honors requests for coupon redemption by retailers up to 5 months after the consumer expiration date. The Company estimates that 50% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by the Company during 2022 is as follows: Liability for unredeemed coupons as of 12/31/2022 P237,500 Total payments to retailers as of 12/31/2022 P165,000 Q4 – What is the amount of estimated premium liability at the setup date? Q5 – What is the amount of handling charges? Q6 – What is the face amount of coupons issued by Rolex Company?
- What is the total face amount of coupons issued by JENNIE Inc. in 2021? In packages of its products, JENNIE Inc. includes coupons that may be presented at retail stores to obtain discounts on other JENNIE products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. JENNIE honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. JENNIE estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by JENNIE during 2021 is as follows: Consumer expiration date - December 31, 2021; Total payments to retailers as of December 31, 2021 - ₱165,000; Liability for unredeemed coupons as of December 31, 2021 - ₱99,000. a.) ₱ 440,000 b.) ₱ 400,000 c.) ₱ 600,000 d.) ₱ 264,000SM Food Company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on certain products of SM. The grocers are reimbursed when they send the coupons to SM. In SM's experience, 50% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date SM receives it. During 2022, SM issued two separate series of coupons as follows (see attached image). The only journal entries to date recorded debits to coupon expense and credits to cash of P536,000. The December 31, 2022 Statement of Financial Position should include a liability for unredeemed coupons of ____________.In packages of its products, Do not cheat Company includes coupons that may be presented at retail stores to obtain discounts on various products. Retailers are reimbursed for the face amount of coupons redeemed plus 15% of that amount for handling cost. The Company honors requests for coupon redemption by retailers up to 5 months after the consumer expiration date. The Company estimates that 50% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by the Company during 2022 is as follows: Liability for unredeemed coupons as of 12/31/2022 P237,500 Total payments to retailers as of 12/31/2022 P165,000 Q1A – What is the amount of estimated premium liability at the set up date? Q1B – What is the amount of handling charges? Q1C – What is the face amount of coupons issed by Do not cheat Company?
- During 2020, Maine Company Sold 50,000 boxes of hotcakes under a new sales promotional program. Each box contains one coupon, which when submitted with P 16, entitles the customer to a banking pan. Maine Co. pay P 20 per pan and P 2 handling and shipping. Maine estimates that 80% of the coupons will be redeemed, even though only 30,000 coupons had been processed during 2020. What amount should Maine report as a liability for unredeemed coupons at Dec. 31, 2020? * A.P 1,000,000 B.P 400,000 C.P 600,000 D.P 300,000luna Company sold 700,000 boxes of “puto” mix under a new sales promotional program. Each box contains one coupon, which if submitted with P40, entitles the customer to a kitchen knife. The company pays P60 per knife and P5 for handling and shipping. It estimates that 70% of the coupons will be redeemed, even though only 250,000 coupons had been processed during 2020. How much should luna report as liability for unredeemed coupons at December 31, 2020?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.)