Pina Corp. offers its customers a 5-piece knife set in exchange for $11 and the purchase of its CC Cookware set. The company purchased 2,930 units of the 5-piece knife sets at $14 each. It estimates that 70% of customers will participate in the promotion and that 5% of the amount received from customers relates to the awarded premiums. In 2024, the company sold 3,650 cookware sets at a sales price of $126 resulting in sales revenue of $459,900. By the end of the year, 2,410 customers took advantage of the promotion. Prepare the appropriate journal entries assuming Pina follows IFRS and uses the revenue approach. Ignore any cost of goods sold entry. (Do not round intermediate calculations. Round answers to 0 decimal places, e.g. 5,125. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Pina Corp. offers its customers a 5-piece knife set in exchange for $11 and the purchase of its CC Cookware set. The company purchased 2,930 units of the 5-piece knife sets at $14 each. It estimates that 70% of customers will participate in the promotion and that 5% of the amount received from customers relates to the awarded premiums. In 2024, the company sold 3,650 cookware sets at a sales price of $126 resulting in sales revenue of $459,900. By the end of the year, 2,410 customers took advantage of the promotion. Prepare the appropriate journal entries assuming Pina follows IFRS and uses the revenue approach. Ignore any cost of goods sold entry. (Do not round intermediate calculations. Round answers to 0 decimal places, e.g. 5,125. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter14: Adjustments And The Work Sheet For A Merchandising Business
Section: Chapter Questions
Problem 1MC
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please answer with working please answer with everything like explanation , computation , formulation with steps no copy paste please answer in text not image thanks need complete and correct answer please remember answer all or leave answer all or skip
Whatever is in red is what is wrong. The rest is correct.
Transcribed Image Text:Pina Corp. offers its customers a 5-piece knife set in exchange for $11 and the purchase of its CC Cookware set. The company
purchased 2,930 units of the 5-piece knife sets at $14 each. It estimates that 70% of customers will participate in the promotion and
that 5% of the amount received from customers relates to the awarded premiums. In 2024, the company sold 3,650 cookware sets at a
sales price of $126 resulting in sales revenue of $459,900. By the end of the year, 2,410 customers took advantage of the promotion.
Prepare the appropriate journal entries assuming Pina follows IFRS and uses the revenue approach. Ignore any cost of goods sold
entry. (Do not round intermediate calculations. Round answers to O decimal places, e.g. 5,125. Credit account titles are automatically indented
when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts.)
Transcribed Image Text:Account Titles and Explanation
Inventory of Premiums
Cash
(To record purchase of premiums)
Cash
Premium Expense
Unearned Revenue
(To record cash sales)
Show Tal
Cash
Premium Expense
Inventory of Premiums
(To record redemption for premiums)
Unearned Revenue
Sales Revenue
(To recognize sales revenue)
Debit
41020
452670
7230
26510
7230
459900
Credit
41020
000 00
459900
33740
459900
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