Problem 2-9 (IFRS)Susan Company is a manufacturer of car shampoo and sellsits product through local retailers. The shampoo costs P550to the retailer. Retailers sell the product to its customersand for each product purchased by the customer, a couponof P100 discount is given and may be used on future purchaseof the same product.Retailers are reimbursed for the discount by the discountby the entity when customers redeem their coupons.During the current year, the entity sold 8,000 products tolocal retailers at P550 each product or P4,400,000. The entityexpected that 75% of the coupons issued will be redeemed.At year end, the entity paid the retailers P250,000 asreimbursement.Required:1. Compute the stand-alone selling price of the rebatecoupons.2. Allocate the transaction price to products sold and tothe rebate coupons.3. Prepare journal entries for the current year.4. Compute the rebate liability at year-end.Problem 2-10 (IFRS)Isabel Company is a manufacturer of deodorant and sells itsproduct through local retailers. The deodorant costs P64 tothe retailer. Retailers sell the product to its customers andfor each product purchased by the customer, a coupon of P20discount is given and may be used on future purchase of thesame product.Retailers are reimbursed for the discount by themanufacturer when customers redeem their coupons.During the current year, the entity sold 10,000 deodorantsto local retailers at P64, each or P640,000. The entity expectedthat 80% of the coupons issued will be redeemed. At yearend, the entity paid the retailers P50,000 as reimbursement.Required:1. Compute the stand-alone selling price of the rebatecoupons.2. Allocate the transaction price between the products soldand the rebate coupons.3. Prepare journal entries for the current year.54ProblMariecustorThe gthe enredeeDurinworthReqC1.2. C3.ܣܘ ܥܕ4.ProShacusThethebeDuWORe1.2.3.4.

Given, Cost of shampoo to the retailer=P550 Discount coupon=P100 Reimbursement Amount=P250,000…

Problem 2-9 (IFRS) its product through local retailers. The shampoo costs P550 Susan Company is a manufacturer of car shampoo and sells to the retailer. Retailers sell the product to its customers and for each product purchased by the customer, a coupon of P100 discount is given and may be used on future purchase of the same product. Retailers are reimbursed for the discount by the discount by the entity when customers redeem their coupons. During the current year, the entity sold 8,000 products to local retailers at P550 each product or P4,400,000. The entity expected that 75% of the coupons issued will be redeemed. At year end, the entity paid the retailers P250,000 as reimbursement. Required: 1. Compute the stand-alone selling price of the rebate coupons. 2. Allocate the transaction price to products sold and to the rebate coupons. 3. Prepare journal entries for the current year.

Problem 2-9 (IFRS) its product through local retailers. The shampoo costs P550 Susan Company is a manufacturer of car shampoo and sells to the retailer. Retailers sell the product to its customers and for each product purchased by the customer, a coupon of P100 discount is given and may be used on future purchase of the same product. Retailers are reimbursed for the discount by the discount by the entity when customers redeem their coupons. During the current year, the entity sold 8,000 products to local retailers at P550 each product or P4,400,000. The entity expected that 75% of the coupons issued will be redeemed. At year end, the entity paid the retailers P250,000 as reimbursement. Required: 1. Compute the stand-alone selling price of the rebate coupons. 2. Allocate the transaction price to products sold and to the rebate coupons. 3. Prepare journal entries for the current year.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 1RP

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