Regal Company sells gift certificates, redeemable for store merchandise. The gift certificates have no expiration date. The entity has the following information pertaining to the gift certificate sales and redemptions: - Unearned revenue on January 1, 2020 2020 sales 2020 redemptions of prior year sales 750,000 2,500,000 250,000
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- Bloom Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, the entity recognizes the unearned revenue as realized. Information for the current year:Unearned gift certificates revenue, January 1 ₱ 250,000Gift certificates sold 1,745,000Gift certificates redeemed 1,483,250Gift certificates which expired 80,000Gross profit rate based on cost 25% Requirements:8. What amount should be reported for the year ended December 31 as:A. SalesB. Cost of SalesBloom Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, the entity recognizes the unearned revenue as realized. Information for the current year:Unearned gift certificates revenue, January 1 ₱ 250,000Gift certificates sold 1,745,000Gift certificates redeemed 1,483,250Gift certificates which expired 80,000Gross profit rate based on cost 25% Requirements: What amount should be reported for the year ended December 31 as Gross Profit? Unearned gift certificates revenue?Cobb Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cobb Company Problem 1-16 (AICPA Adapted) recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 Gift certificates sold Gift certificates redeemed 650,000 2,250,000 1,950,000 100,000 60% Gift certificates unredeemed for a long time Cost of goods sold What amount should be reported as unearned revenue at year-end? а. 510,000 b. 570,000 c. 850,000 d. 950,000
- Cobb Department Store sells gift certificates redeemable only when merchandise is purchased. These gift certificates have no expiration date. Upon redemption or expiration, the entity recognizes the unearned revenue as realized. Information for the current year is as follows: Unearned revenue, January 1, 2013 Gift certificates sold 650,000 2,250,000 1,950,000 100,000 Gift certificates redeemed Gift certificates expected not to be redeemed Cost of goods sold 60% On December 31, 2013, what amount should be reported as unearned revenue?Galaxy S21+ 5G Problem 4-2 (IAA) Credible Company provided the following T-account summarizing the transactions affecting the accounts receivable for the current year: Jan. 1 balance Charge sales Shareholders' subscriptions Deposit on contract Claims against common carrier for damages IOUS from employees Cash advance to affiliates Advances to a supplier Accounts Receivable 600,000 Collections from customers 5,300,000 6,000,000 Writeoff 35,000 Merchandise returns 200,000 Allowances to customer 120,000 40,000 for shipping damages Collections on carrier claims 100,000 Collection on subscriptions 10,000 100,000 50,000 25,000 40,000 50,000 Required: a. Compute the correct amount of accounts receivable. b. Prepare one compound entry to adjust the accounts receivable. c. Compute the amount to be presented as "trade and other receivables" under current assets. d. Indicate the classification and presentation of the other items. Problem 4-3 (ACP) Problem 4-4 (ACP) credit to accounts receivable.…12. Cathy company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cathy company recognizes the unearned revenue as realized. Information for the current year:Unearned revenue, January 1 780,000Gift certificates sold 2,700,000Gift certificates redeemed 2,340,000Gift certificates unredeemed for a long time 120,000Cost of goods sold 60% What amount should be reported as unearned revenue at year end?
- Problem 3: JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 250,000 Gift certificates sold 1,745,000 1,483,250 80,000 25% Gift certificates redeemed Gift certificates which expired Gross profit rate based on cost Requirements: 8. What amount should be reported for the year ended December 31 as: A. Sales В. Cost of Sales Gross profit D. Unearned gift certificates revenue C.SM Department Store sells gift certificates, redeemable for store merchandise that expires one year after their issuance. SM has the following information pertaining to its gift certificate sales and redemptions: Unearned Gift Certificates, beginning - P600,000 Gift Certificates sold during the current year - P2,000,000 Prior year gift certificates redeemed in the current year - P200,000 Gift certificates sold and redeemed in the current year - P1,400,000 SM’s pattern indicates that 90% of gift checks sold will be redeemed. On December 31, 2022, how much should be reported by SM as Unearned Gift Certificates?Required Information [The following information applies to the questions displayed below.] Wiset Company completes these transactions during April of the current year (the terms of all Its credit sales are 2/10. n/30). Apr. 2 Purchased $14,480 of nerchandise on credit fron Noth Company, terms 2/18, n/60. 3 (a) Sold nerchandise on credit to Page Alistair, Invoice No. 768, for $4,100 (cost is $2,700). 3 (b) Purchased $1,540 of office supplies on credit from Custer, Inc. terns n/30. 4 Issued Check No. 587 to World View for advertising expense of $913. Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,500 (cost is $6,70e). Returned $95 of office supplies purchased on April 3 to Custer, Inc. Wiset reduces accounts payable by that amount. 5 6 9 Purchased $10,465 of store equipment on credit from Hal's Supply, terms n/30. Sold nerchandise on credit to Nic Nelson, Invoice No. 762, for $13,200 (cost is $6,9e0). Issued Check No. 588 to Noth Company in paynent of its April 2…
- Problem 5-20 (AICPA Adapted) Sky Company provided the following information at year-end: 2020 2019 Accounts receivable Allowance for doubtful accounts Allowance for sales returns 880,000 ( 10,000) ( 20,000) 800,000 ( 15,000) ( 25,000) Net realizable value 850,000 760,000 The entity reported doubtful accounts expense in 2020 of P30,000 and had products returned for credits totaling P15,000 at sale price. Gross sales for 2020 amounted to P6,150,000. 4. What anmount was reported as net sales for 2020? a. 6,150,000 b. 6,140,000 c. 6,100,000 d. 6,135,000JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year: Unearned gift certificates revenue, January 1 ₱ 250,000 Gift certificates sold 1,745,000 Gift certificates redeemed 1,483,250 Gift certificates which expired 80,000 Gross profit rate based on cost 25% What amount should be reported for the year ended December 31 as:A. Gross profitB. Unearned gift certificates revenueRecording Revenue and Receivables Under a Consignment Arrangement On March 15, 2020, Drexel Corp. provides goods to a retailer through consignment where Drexel Corp. retains ownership of the goods until the goods are sold to the retailer’s customer. Sale to the final customer is documented when the goods are scanned at the cash register of the retailer. Drexel Corp. receives a daily report on the number of units sold by the retailer to the end customer. Any unsold product can be returned to Drexel Corp. at anytime. Drexel Corp. has the right through the contract to recall any goods shipped and to transfer the goods to another retailer as a way to increase the rate of sales to the final customer. After the sale of the products to the final customer, the retailer cannot return the items to Drexel Corp. During March of 2020, Drexel Corp. transferred 2,400 units to the retailer, and the retailer sold 2,000 units. The product cost Drexel Corp. $80 per unit and the product was sold for $115…