The Cold Foods Corp. launched a sales promotion of its new product, Cold Candy. For every six (6) yellow wrappers returned one (1) ball pen is given as a price. It is estimated that only 40% of the yellow wrappers of all sales of Cold Candy with yellow wrappers will be returned for the exchange with ball pen prize. Starting July 1, 2019, all Cold Candy to be sold will have blue wrappers. During the six (6) months period ending June 30, 2019: Sales of Cold Candy, yellow wrappers, 180,000 for P900,000. Ball pen given in exchange of returned wrappers, 4,000 costing P16,000. If all the estimated number of yellow wrappers to be returned are returned and the corresponding ball pen prizes be purchased and given to the customers returning the wrappers, how much is the amount of the purchase of the ball pen? Prepare all entries related to the above transactions affecting Cold Foods Corp.

The Cold Foods Corp. launched a sales promotion of its new product, Cold Candy. For every six (6) yellow wrappers returned one (1) ball pen is given as a price. It is estimated that only 40% of the yellow wrappers of all sales of Cold Candy with yellow wrappers will be returned for the exchange with ball pen prize. Starting July 1, 2019, all Cold Candy to be sold will have blue wrappers. During the six (6) months period ending June 30, 2019: Sales of Cold Candy, yellow wrappers, 180,000 for P900,000. Ball pen given in exchange of returned wrappers, 4,000 costing P16,000. If all the estimated number of yellow wrappers to be returned are returned and the corresponding ball pen prizes be purchased and given to the customers returning the wrappers, how much is the amount of the purchase of the ball pen? Prepare all entries related to the above transactions affecting Cold Foods Corp.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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