Problem 6. Use the following information for the next two questions: DISCALCED BAREFOOTED NAKASAKASAKA Supermarket, Inc. awards customers loyalty points for their purchases. A customer is entitled to one point for every P 400 purchase. The points accumulated may be redeemed for awards in the form of appliances, electronics, groceries and other household items. DISCALCED estimates the stand-alone selling price of each point at P 4.00. During the period, DISCALCED made total sales of P 40M to cardholders. 1. How much sales revenue is recognized? a) 400,000 b) 40,000,000 c) 39,600,000 d) 0 2. How much is the deferred revenue from loyalty points? a) 400,000 b) 40,000,000 c) 39,600,000 d) 0

Problem 6. Use the following information for the next two questions: DISCALCED BAREFOOTED NAKASAKASAKA Supermarket, Inc. awards customers loyalty points for their purchases. A customer is entitled to one point for every P 400 purchase. The points accumulated may be redeemed for awards in the form of appliances, electronics, groceries and other household items. DISCALCED estimates the stand-alone selling price of each point at P 4.00. During the period, DISCALCED made total sales of P 40M to cardholders. 1. How much sales revenue is recognized? a) 400,000 b) 40,000,000 c) 39,600,000 d) 0 2. How much is the deferred revenue from loyalty points? a) 400,000 b) 40,000,000 c) 39,600,000 d) 0

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 1RP

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