. Please asist with teh amounts to reocrd the redemption of 7700customers.JJP Corporation sold Sugar Frosted Cocoa Bombs, a children'sbreakfast cereal. As a promotion, JJP offered its customers a free music CD inexchange for four box tops, plus $3.00 to cover postage and handling. The CDcost JJP $3.25, and postage costs to mail the CDs out to customers were $2.50. JJP estimated that 70% of its customers would redeem box tops. JJPpurchased 11,000 CDs at the start of the promotion in November,2023. 120,000 boxes of cereal were sold during November and December,2023, and JJP's year - end was December 31. Prior to the end of the fiscalyear, 7, 700 customers took advantage of the offer, which continued untilFebruary, 2024. JJP follows ASPE and uses the expense approach to accountfor its premiums. Your answer is partially correct.Prepare the journal entry to record the redemption by 7,700 customers. (Credit account titles are automatically indented when the amount isentered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationCashPremium ExpenseInventory of PremiumseTextbook and MediaYour answer is correct.Account Titles and ExplanationPremium ExpenseDebitEstimated Liability for Premiums23,100DebitPrepare the journal entry to record the year-end accrual entry for estimated premium expense. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts.)Credit36,57521,175Credit44,27536,575

Journal entry is used to record the financial transactions in the book of accounts in two different…

Prepare the journal entry to record the redemption by 7,700 customers. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Cash Premium Expense Inventory of Premiums eTextbook and Media Your answer is correct. Account Titles and Explanation Premium Expense Debit Estimated Liability for Premiums 23,100 Debit Prepare the journal entry to record the year-end accrual entry for estimated premium expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Credit 36,575 21,175 Credit 44,275 36,575

Prepare the journal entry to record the redemption by 7,700 customers. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Cash Premium Expense Inventory of Premiums eTextbook and Media Your answer is correct. Account Titles and Explanation Premium Expense Debit Estimated Liability for Premiums 23,100 Debit Prepare the journal entry to record the year-end accrual entry for estimated premium expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Credit 36,575 21,175 Credit 44,275 36,575

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

. Please asist with teh amounts to reocrd the redemption of 7700
customers.JJP Corporation sold Sugar Frosted Cocoa Bombs, a children's
breakfast cereal. As a promotion, JJP offered its customers a free music CD in
exchange for four box tops, plus $3.00 to cover postage and handling. The CD
cost JJP $3.25, and postage costs to mail the CDs out to customers were $
2.50. JJP estimated that 70% of its customers would redeem box tops. JJP
purchased 11,000 CDs at the start of the promotion in November,
2023. 120,000 boxes of cereal were sold during November and December,
2023, and JJP's year - end was December 31. Prior to the end of the fiscal
year, 7, 700 customers took advantage of the offer, which continued until
February, 2024. JJP follows ASPE and uses the expense approach to account
for its premiums.

Your answer is partially correct.
Prepare the journal entry to record the redemption by 7,700 customers. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation
Cash
Premium Expense
Inventory of Premiums
eTextbook and Media
Your answer is correct.
Account Titles and Explanation
Premium Expense
Debit
Estimated Liability for Premiums
23,100
Debit
Prepare the journal entry to record the year-end accrual entry for estimated premium expense. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.)
Credit
36,575
21,175
Credit
44,275
36,575

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