Company manufacturers a product that is packaged and sold. A plate is offered to customers sending in three vrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below. 2021 2022 ales urchase of premium, P50 per plate Tumber of plates distributed as premiums stimated number of plates to be 3,600,000 390,000 5,000 4,200,000 580,000 9,000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 7Q: Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to...
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Miracle Company manufacturers a product that is packaged
and sold. A plate is offered to customers sending in three
wrappers accompanied by a remittance of P10.
Data with respect to the premium offer are summarized below.
2021
2022
Sales
Purchase of premium, P50 per plate
Number of plates distributed as premiums
Estimated number of plates to be
distributed in subsequent period
Distribution cost P20 per plate
3,600,000
390,000
5,000
4,200,000
580,000
9,000
2,000
3,000
Required:
Prepare journal entries that would be made in 2021 and 2022
to record sales, premium purchases and redemptions, and
year-end adjustments.
Transcribed Image Text:Miracle Company manufacturers a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below. 2021 2022 Sales Purchase of premium, P50 per plate Number of plates distributed as premiums Estimated number of plates to be distributed in subsequent period Distribution cost P20 per plate 3,600,000 390,000 5,000 4,200,000 580,000 9,000 2,000 3,000 Required: Prepare journal entries that would be made in 2021 and 2022 to record sales, premium purchases and redemptions, and year-end adjustments.
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