William Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During
Q: Jose incurred $16,000 childcare cost for his 3 kids when he went out of town for business trip. •…
A: The Child Tax Credit is a tax benefit granted to American taxpayers for each qualifying dependent…
Q: Please prepare the following joiurnal entries: Show all calcualtions
A: Journal is a book, which is used for the record keeping. Day to day business transactions are…
Q: Bertucci Corporation makes three products that use the current constraint which is a particular type…
A: Contribution margin is the excess of sales over the variable cost. the higher the contribution…
Q: Patton Corporation uses a standard cost system to account for the costs of its one product. Budgeted…
A: Variance is the amount of difference between the budgeted production and the actual production. It…
Q: Federal income taxes are subject to a maximum amount per employee per year. True False
A: The federal income tax the tax charge in United States of America only animal learning of…
Q: Colonial Corporation uses the retail method to value its inventory. The following information is…
A: The term "cost of goods sold" (COGS) refers to the expenses that are incurred directly in the…
Q: The Let's Read organization is a public charity under Internal Revenue Code IRS section 501(c)(3).…
A: Oganizations that are classified as public charities are those that:- Are churches, hospitals,…
Q: A new customer ABC Ltd, wants to buy 500 units of your product, but is only prepared to pay RM4 per…
A: Corporation - A company is a separate legal entity from its shareholders. Many of the same legal…
Q: Circle cellar sells equipment on June 1 2021 for $695,000 cash. Circle incurred 4000 of removal and…
A: An accounting book's journal entry is a record of a company's financial transactions. A fully…
Q: Mango Place has forecast its sales for the coming months as follows: Standard Units April 102 May…
A: Sales Budget and Production budget :Sales budget is prepared to show the no. of units to be sold in…
Q: Current Attempt in Progress Your answer is partially correct. The following are a series of…
A: The question has asked about the estimation of bad debt expenses for the year 2025. Bad debt…
Q: Vaughn Company reported net income of $112000 for the year ended December 31, 2020. During the year,…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: What does the term "Cash and Cash Equivalents" mean? Cash and short-term, highly liquid investments…
A:
Q: 6. MBIEN This machinery was acquired by trading in used machinery. Facts concerning the trade- in…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: Which of the following statements is true? Eliminating nonproductive processing time is…
A: Bottle neck operation is state where the entity is operating at maximum capacity such that no…
Q: $ 900 $1,500 $3,200 $ 11,000 $900 ng) $1,200 $3,500
A: Closing entries are journal entries to close temporary accounts by making the balance nil. Temporary…
Q: Goldie Corporation takes out a $10,000 cash loan from its bank by signing a 15%, 9-month promissory…
A: According to accrual concept of accounting, all the expenses are recorded at the time of accrual…
Q: With respect to changes in IT auditing today, which of the following is NOT true? a. IT governance,…
A: Audit refers to the process of verification and examination of the economic or financial…
Q: Cash and cash equivalents, beginning of the year Operating activities: Net income Adjustments to…
A: Financial leverage is a technique used to borrow funds for investment in assets. These assets should…
Q: New office furniture- purchase price $18,000. On October 11, 2021, No additional first-year or…
A: Because of usage, wear and tear, or obsolescence, the monetary worth of an object will depreciate…
Q: ournalise the following transactions in the books of Kiran publisher 3rd May : Cash deposited into…
A: Journal entries are important since they give a thorough account of your everyday financial…
Q: ansawer
A: Where a partnership itself is generally not subject to income tax, individual partners (including…
Q: The following information is available for ADT Company, which produces special-order security…
A: In an organization's accounting system, a journal entry documents a commercial transaction. The…
Q: Grace Co. can further process Product B to produce Product C. Product B is currently selling for $22…
A: Differential Revenue is difference between Alternative 1 and Alternative 2 Revenue Selling price of…
Q: The financial statements of International Foods for the
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: Which of the following departments often found in a merchandising organization would be classified…
A: Line department is the department in the entity which provides the core services to the entity in…
Q: Discuss the circumstances when an investor can use section 1031 of the Internal Revenue Code (IRC)…
A: If the taxpayer sells real estate for a profit, the taxpayer may be subject to capital gains taxes.…
Q: Dwight Donovan, the president of Finch Enterprises, is considering two investment opportunities.…
A: The difference between the present value of cash inflows and the present value of cash outflows over…
Q: Camaro GTO Torino Cash $ 2,350 $ 220 $ 1,200 Short-term investments 0 0 700 Current receivables 250…
A: The ratio analysis helps to analyse the financial statements of the business based om various…
Q: Whispering's Market United (WMU) is an umbrella organization for all Individuals who are go-getters…
A:
Q: Required information Use the following information for the Quick Study below. (Algo) [The following…
A: INTRODUCTION: Volume Variance is a technique for determining whether there is a discrepancy between…
Q: The answer was incorrect. Could you please recalculate the problem. Thank you.
A: Lets understand the basics. Bad debt is amount uncollectible from the account receivables. It is an…
Q: Question. Journalizing Transactions Remington Communications has been providing cellular phone…
A: Journal entry is the primary step to record the transaction in the books of accounts. The increase…
Q: a. What amount of ordinary Income and separately stated items are allocated to them for year 1 based…
A: Ordinary earnings is any form of earnings that’s taxable at regular rates. Examples of regular…
Q: On July 15, 2021, Ortiz & Co. signed a contract to provide EverFresh Bakery with an…
A: Performance obligation refers to the promise that is made for providing different goods or…
Q: AYALA LAND, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Amounts in Thousands, Except…
A: Horizontal Analysis is a financial statement analysis tool used for comparison of historical data of…
Q: Prepare the closing entries and Post Closing Trial Balance Listed below are the accounts taken from…
A: Trial balance is the financial statement that records all the accounts balances from the general…
Q: A distressed student is suing his college, claiming that his accounting instructor is a sorceress of…
A: Contingent liability is defined as a liability which may arise depending on the outcome of a…
Q: AirPro Corporation reports the following for this period. Actual total overhead Standard overhead…
A: OVERHEAD VARIANCE Overhead cost variance is the difference between the actual overhead incurred…
Q: Hi, What is the formula to calculate this?
A: Net Income $976300 Preferred shareholders as on December 14= 13.6 million Preferred Stockholder's…
Q: Williams-Santana Inc. is a manufacturer of high-tech Industrial parts that was started in 2009 by…
A: A journal is a detailed account that records all the financial transactions of a business, to be…
Q: Mel Company acquired a new machinery On August 15, 2022. The following data are available: P…
A: Cost of machinery includes all the cost which are necessary to make the machinery in the ready to…
Q: Question 8 If Automated taxes and form setting is on, can you change the date of payment for…
A: Automation allows tax preparers to quickly access the information they need instead of spending…
Q: NPV and IRR are two DCF methods for analysing a proposed capital investment. Briefly explain how…
A: The characteristics and returns, including the risk of publicly traded investments like stocks,…
Q: BioWare's year-end unadjusted trial balance shows accounts receivable of $31,000 and sales of…
A: Bad debt expense (uncollectable sales) = 2% of sales…
Q: Notes and Accounts Receivable that result from sales transactions are sometimes called Trade…
A: Answer : False
Q: Current Attempt in Progress The net income per books of Kimberly Young Company was determined…
A: Net Income :— It is the difference between total sales revenue and total expenses. Error in…
Q: beyond the rate of general inflation without diminishing market share, due to keen competition in…
A: Introduction Price level change refers to the gradual growth or reduction in the value of money as a…
Q: Base Inc. (Base) and Space Ltd. (Space) formed a joint venture, Moon Ltd., on January 1, 2023. Base…
A: Introduction A business's balance sheet lists plant and equipment as a non-current, actual financial…
Q: 4. Devo Oil Company acquired property rights to search has oil reserves, for $15,400,000. The…
A: Depreciation is very important in accounting but the method of depreciation should be used properly…
Topic: Premium Liability
Problem 2-20
William Company operates a customer loyalty program. The entity grants loyalty points for goods purchased.
The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date.
During 2020, the entity issued 100,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is reliably measured at P2,000,000.
In 2020, the entity sold goods to customers for a total consideration of P8,000,000 based on stand-alone selling price.
The award credits redeemed and the total award credits expected to be redeemed each year are as follows
|
Redeemed |
Expected to be redeemed |
|
|
2020 |
30,000 |
80% |
|
2021 |
15,000 |
90% |
Solve for the following:
- The revenue from points for 2020
- The revenue from points for 2021
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- 11:/13 Problem 2-2U S) William Company operates a customer loyalty program. T entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchane for goods of the entity. The pointa have no expiry date. During 2020, the entity issued 100,000 award credits and expects that 80% of these award credits shall be redeemed The total stand-alone selling price of the award credita granted is reliably measured at P2,000,000. In 2020, the entity sold goods to customers for a total consideration of P8,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2020 2021 30,000 15,000 80% 90% 1. What is the revenue from points for 2020? 1,600,000 b. a. 1.500,000 600,000 d. 480,000 2. What is the revenue from points for 2021? a. 240,000 b. 200,000 120,000 04.29Problem 2 Erika Company operates lovaity program. The entity grants loyalty points for goods purchased. The loyalty points van be used by costumer in exchange for goods of the entity. The points have no expiry date. During 2021, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeerned. The Total Stand-alone selling price of the award credits granted is reliably measured at P1, 00,000 in 2021, the entity sold goods to costumers for a total consideration of P7, 000,000 based on stand-alone selling price. « Th i The award credits redeemed and the total award credits expected to be redeerned each year: Redeemed Expected to be Redeemed 2021 15,000 7,950 2,550 15.000 B0% 2022 85% 85% 90% 2023 2024 1. What amount should be reported as revenue points for 20217 A. 328, 125 B. 875,000 C. 700,000 D. 175,000 2. What amount should be reported as revenue frorn points for 2022? A. 472, 500 В. 4А, 375 C. 415, 625 D. 236, 250 3. What amount shauld be…Problem 2-20 (IFRS) William Company operates a customer loyalty program.The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020,the entity issued 100,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is reliably measured at P2,000,000. In 2020, the entity sold goods to customers for a total consideration of P8,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2020 30,000 80% 2021 15,000 1. What is the revenue from points for 2020? a. 1,600,000 b 1,500,000 C. 600,000 d 480,000 2. What is the revenue from points for 2021? a.240,000 B.200,000 C. 120,000 d 0
- 3. Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be Redeemed 2020 15,000 80% 2021 7,950 85% 2022 2,550 85% 2023 15,000 90% Required: Prepare journal entries from 2020 to 2023.Problem 2-5 (IFRS) Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for the goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2020 15,000 80% 2021 7,950 85%…Problem 2-25 (IFRS) William Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2022, the entity issued 100,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is reliably measured at P2,000,000. In 2022, the entity sold goods to customers for a total consideration of P8,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: 2022 2023 a. b. Redeemed 30,000 15,000 1. What amount should be reported as revenue from points for 2022? C. d. 1,600,000 1,500,000 600,000 480,000 Expected to be redeemed 80% 90% 2. What amount should be reported as revenue from points for 2023? a. 240,000 b. 200,000 120,000 0 C. d. 65
- Cucu Company sells gift certificates redeemable only when merchandise is purchase. The certificates have anexpiration date two years after issuance date. Upon redemption or expiration, Cucu Company recognizes theunearned revenue as realized. Data for 2020 are as follows:Unearned revenue, 1/1/2020 P800,000Gift certificates sold 4,000,000Gift certificates redeemed 3,200,000Expired gift certificates 400,000Cost of goods sold 60%At December 31, 2020, what amount of current liability should Cucu report in relation to gift certificates?a. P1,200,000 b. P800,000 c. P400,000 d. d. P0Familiar Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 450,000 award credits and expects that 40% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P9,000,000. In 2019, the entity sold goods to customers for a total consideration of P36,000,0000 based on a stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 135,000 40% 2020 67,500 45% What is the revenue from points for 2019? P1,350,000 P3,600,000 P1,080,000 P3,375,000 What is the revenue from points for 2020?…Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be Redeemed 2020 15,000 80% 2021 7,950 85% 2022 2,550 85%…
- Besik Inc. operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. During 2020, the entity issued 25,000 award credits and expects that 85% of these shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,500,000. In 2020, the entity sold goods to customers for a total consideration of P 8,500,000 based on stand-alone selling price. On Dec. 31, 2020, 10,000 award credits have been redeemed. In 2021, the management revised expectations and expects 80% of the award credits to be redeemed. In 2021, 5,000 award credits redeemed. What is the revenue earned from award credits for 2021? *a. P 956,250b. P 600,000c. P 356,250d. P 318,750Problem 2-24 (IFRS) Alyanna Company operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on purchases. Program members can redeem the points for further purchases. The points have no expiry date. During 2022, the customer earned 60,000 points. Management expects that 100% of these points will be redeemed. The stand-alone selling price of each loyalty point is estimated at P20. The sales during 2022 amounted to P6,800,000 based on stand-alone selling price. On December 31, 2022, 28,800 points have been redeemed in exchange for purchases. In 2023, the management revised expectations and now expects 90% of the points to be redeemed. In 2023, the entity redeemed 9,000 points. 1. What amount of the transaction price should be allocated to the points? a. 1,800,000 b. 1,200,000 c. 1,020,000 d. 0 2. What amount should be reported as revenue earned from loyalty points for 2022? a. 576,000 b. 489,600 c. 510,000 d. 0 3. What…5. MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 50,000 award credits. The fair value of the award credits is reliably measured at P2,000,000. In 2019, the entity sold goods to customers for a total consideration of P9,000,000 including the fair value of the award credits. The total award credits expected to be redeemed are 80% in 2019 and 85% in 2020. The award credits actually redeemed are 15,000 in 2019 and 7,950 in 2020. What is the revenue earned from points in 202O? * a. P600,000 b. P750,000 c. P330,000 d. P318,000
