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- Energetic Company includes one coupon in each box of laundry soap it sells for P500 each. A towel costing P100 and with a selling price of P120 is offered as a premium to customers who send in 10 coupons and a remittance of P20. The following are the information available (see image below).Energetic’s experience indicates that only 30% of the coupons will be redeemed. (Do not round off during computation)How much is the Total Revenue to be recognized in 2021?To increase sales, DD Company inaugurated a promotional campaign on June 30, 2020. DD placed a couponfor a premium in each box of cake sold at P400. A coffee mug costing P60 is offered as premium to customers who sendin 5 coupons and a remittance of P20. The distribution cost per premium is P10. DD Company estimated that only80% of the coupons issued will be redeemed. For the six months ended December 31, 2020, the following data isavailable in terms of units:Boxes of cake sold 20,000Premiums purchased 3,000Coupons redeemed 10,000What is the estimated liability for premiums on December 31, 2020?a. P180,000 b. P150,000 c. P160,000 d. P60,000Phoenix Company, places a coupon in each box of its product. Customers may send in ten coupons and P3.00, and the company will send them a romantic pillow. Sufficient pillows were purchased at P5.40 a piece. During 2019, 1,260,000 boxes were sold. It was estimated that a total of 5% of the coupons will be redeemed. In 2019, 18,000 coupons were redeemed. How much is the premium expense for the year 2019?
- Marigold Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Marigold Company purchased 9,100 premiums at 75 cents each and sold 101,000 boxes of soap powder at $ 3.60 per box; 40,800 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption.Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)Ariana Corporation includes two coupons in each box of cereal box and 9 coupons are needed to be redeemed for the customer to receive a child’s toy dog. In 2020, Ariana Corporation purchased 4,700 toy dogs at $1.05 each. They sold 75,100 boxes of cereal at $4.75 per box, of which the coupons portion is valued at $.25 per box. In total, 31,500 coupons were presented for redemption in 2020. It is estimated that 40% of the coupons will eventually be redeemed. The company uses the Expense approach. Required: Prepare the journal entries required for 2020 using the Expense approach, specifically for the sales of the cereal boxes, the purchase of the toy dogs, the redeemed coupons and the accrual required at year end. Show all calculations. If the company had used the Revenue approach instead, how much revenue from the coupons redeemed would be recorded in 2020?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?
- On 2009, Jhet Enterprises sold 485,000 boxes of cereals under a promotional program. Each box contains one coupon, which entitles the buyer to a premium that cost the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the buyer to receive a premium. Jhet Enterprises estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional info revealed that ₱10 per premium is incurred for storage and distribution. Required: Compute for the liability for the unredeemed coupons.On 2009, Jhet Enterprises sold 485,000 boxes of cereals under a promotional program. Each box contains one coupon, which entitles the buyer to a premium that cost the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the buyer to receive a premium. Jhet Enterprises estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional info revealed that ₱10 per premium is incurred for storage and distribution. Required: Compute for the premium expense for the year.Balley Co. includes one coupon in each bag of dog food it sells. In return for 3 coupons, customers receive a dog toy that the company purchases for P1.50 each. Balley's experience indicates that 60 percent of the coupons will be redeemed. During 2004, 100,000 bags of dog food were sold, 12,000 toys were purchased, and 45,000 coupons were redeemed. During 2005, 120,000 bags of dog food were sold, 16,000 toys were purchased, and 60,000 coupons were redeemed. Requirements: a. Compute for the premium expenses in 2004 and 2005, respectively. b. Compute for the liabilities for premium as of December 31, 2004 and December 31, 2005, respectively.
- Edwards Co. includes one coupon in each bag of dogfood it sells. In return for four coupons, customers receive a dogtoy that the company purchases for $1.20 each. Edward’s experienceindicates that 60% of the coupons will be redeemed. During 2010,100,000 bags of dog food were sold, 12,000 toys were purchased, and40,000 coupons were redeemed. During 2011, 120,000 bags of dog foodwere sold, 16,000 toys were purchased, and 60,000 coupons wereredeemed. Instructions: Determine the premium expense to bereported in the income statement and the estimated liability forpremiums on the balance sheet for 2010 and 2011.Phoenix Company, places a coupon in each box of its product. Customers may send in ten coupons and P3.00, and the company will send them a romantic pillow. Sufficient pillows were purchased at P5.40 a piece. During 2019, 1,260,000 boxes were sold. It was estimated that a total of 5% of the coupons will be redeemed. In 2019, 18,000 coupons were redeemed. How much is the liability for premiums outstanding as of December 31, 2019? 43,200 24,300 15,120 45,200 10,800No Doubt Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, No Doubt Company purchased 8,800 premiums at 80 cents each and sold 110,000 boxes of soap powder at $3.30 per box; 44,000 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption. Instructions Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020.