*see attached Determine the (a) premium expense and (b) estimated liability as of the reporting period: a. (a) P 24,000 and (b) P 14,000 b. (a) P 24,000 and (b) P 10,000 c. (a) P 48,000 and (b) P 14,000 d. (a) P 48,000 and (b) P 20,000
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*see attached
Determine the (a) premium expense and (b) estimated liability as of the reporting period:
a. (a) P 24,000 and (b) P 14,000
b. (a) P 24,000 and (b) P 10,000
c. (a) P 48,000 and (b) P 14,000
d. (a) P 48,000 and (b) P 20,000
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- 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?A Company sold 80,000 sold reversible shirts under a new sales promotional program during the year. Each shirt carried one coupon which entitled the customer to a P50 cash rebate. The entity estimated that 70% of the coupons will be redeemed even though only 35,000 coupons had been processed during the current year. what amount should be reported as rebate liability for unredeemed coupons at year-end? a. 1,225,000 b. 1,750,000 c. 0 d. 1,050,000Ben and Co. inaugurated a sales promotion campaign on May 31, 2019, whereby Ben placed a coupon in each package of chocolate sold, the coupons being redeemable for a premium. Each premium costs Ben P 50 and a customer to receive a coupon must present five coupons. Ben estimated that only 60 % of the coupon issued would be redeemed. For the seven months ended Dec. 3, 2019, the following information is available: Packages of chocolates sold 400,000 Premium purchased 30,000 Coupons redeemed 100,000 How much is the estimated liability for premium claims outstanding at Dec. 31, 2019? * A.P 180,000 B.P 140,000 C.P 240,000 D.P 100,000
- 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.)A Company sold 80,000 sold reversible shirts under a new sales promotional program during the year. Each shirt carried one coupon which entitled the customer to a P50 cash rebate. The entity estimated that 70% of the coupons will be redeemed even though only 35,000 coupons had been processed during the current year. What amount of rebate expense should be reported for the current year? a. 2,800,000 b. 2,250,000 c. 1,750,000 d. 4,000,000Brown crop sells TV products. In order to attract more consumers, Brown corp offers 1 unit of bag which can be exchanged for 10 coupons. Each bag is accompanied by 1 coupon sheet. The company estimates that customers will redeem 80% of the outstanding coupons. During 19x5 Brown Corp. has achieved sales of 600,000 TVs at a selling price of 500,000/unit and purchased 100,000 units of bags as inventory at a cost of $62,500/unit. During the offer period, 165,000 coupons were exchanged for bags by customers. Prepare:1. Journal of recording purchases of bags2. Sales recording journal3. Journal of coupon redemption by customer4. The adjusting entry to recognize the liability at 31 December 19x5
- In December 2021, Belarmino Company began including one coupon in each package of candy that is sells and offering a toy in exchange of P5 and five coupons. The toys cost P8 each. Eventually, 60% of the coupons will be redeemed. During December, Belarmino Company sold 110,000 packages of candy and no coupons were redeemed. Belarmino Company should report an estimated liability for coupons of Group of answer choices 105,600 198,000 39,600 528,000On 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.
- On July 1, 2021, Sansrival Company started a sales promotional campaign. In each box of cereal sold, Sansrival inserted a coupon redeemable for a premium. To receive a premium, each customer must submit five coupons. Sansrival’s cost for each premium is P6. Sansrival estimated that 60% of the coupons issued would be redeemable. For the six months ended December 31, 2021, the following information is available: Boxes of cereal sold 800,000 Coupons Redeemed 200,000 How much should be the estimated liability for premium claims outstanding at December 31, 2021?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.) ₱ 264,000Sweet Dates Company offers a premium to its customers—a glass bowl (cost to Sweet Dates is $0.90) upon return of 40 coupons. Two coupons are placed in each box of dates sold. The company estimates, on the basis of past experience, that only 70% of the coupons will ever be redeemed. During 2019, 10 million boxes of dates are sold at $0.30 each. Eight million coupons are redeemed during 2019. Sweet Dates purchased 360,000 glass bowls for the plan on January 1, 2019. Required: 1. Prepare the journal entries related to the sale of dates and the premium plan in 2019. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.