Wynn Corp. offers a set of building blocks to customers who send in three codes from Wynn

Question:

Wynn Corp. offers a set of building blocks to customers who send in three codes from Wynn cereal, along with $1. Wynn purchased 100,000 building block sets in 2014 for $2.50 each, and paid for them by cash. During 2014, Wynn sold one million boxes of cereal for $4 per box. Wynn estimates that 10% of the sales amount received from customers relates to the building block sets to be awarded. The company expects 30% of the codes to be sent in, and in 2014, 240,000 codes were redeemed. Prepare all necessary journal entries for 2014 if
(a) Wynn follows IFRS and prefers to use the revenue approach, and
(b) Wynn follows ASPE and prefers to use the expense approach.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

Question Posted: