Sleepy Co. has sold gift cards for many years and, based on its experience, 10 % of the gift cards sold are never redeemed. In February 20x1, Sleepy Co. sold P100,000 worth of gift cards, of which P54,000 were redeemed. Sleepy Co. uses PFRS 15. How much are the (1) total revenue and (2) month-end balance of liability recognized from the sale of gift cards during the month?

Sleepy Co. has sold gift cards for many years and, based on its experience, 10 % of the gift cards sold are never redeemed. In February 20x1, Sleepy Co. sold P100,000 worth of gift cards, of which P54,000 were redeemed. Sleepy Co. uses PFRS 15. How much are the (1) total revenue and (2) month-end balance of liability recognized from the sale of gift cards during the month?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 7DQ

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