ram. A towel is offered as a prer tance of P25. Distribution cost is ching the market will be redeem

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 15RE: GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells...
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Compute for the premium liability for the year ended:
A. December 31, 2020
B. December 31, 2021

Problem 2:
JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10
box tops of facial soap returned and a remittance of P25. Distribution cost is P10 per towel. The entity
estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the
following information:
2020
2021
Facial soap sales, P50 per unit
Towel purchases, P90 per unit
Number of box tops returned
2,500,000
2,875,000
337,500
360,000
22,500
38,550
Transcribed Image Text:Problem 2: JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is P10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, P50 per unit Towel purchases, P90 per unit Number of box tops returned 2,500,000 2,875,000 337,500 360,000 22,500 38,550
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