Metropolis Books sold 50,000 copies of a best-selling novel in July for $8 each. Included in each book was a $2 mail-in rebate for a future book purchase if the customer sends in proof of purchase with a completed rebate form. Metropolis estimates that 10% of the purchasers will claim the rebate. (a) Calculate the sales revenue and the unearned
Chapter 2, Brief Exercises #10
Metropolis Books sold 50,000 copies of a best-selling novel in July for $8 each. Included in each book was a $2 mail-in rebate for a future book purchase if the customer sends in proof of purchase with a completed rebate form. Metropolis estimates that 10% of the purchasers will claim the rebate.
(a) Calculate the sales revenue and the unearned revenue related to the loyalty program that Metropolis earned in July on this book.
(b) Prepare the journal entry to record the sale and the unearned revenue Metropolis Books should record.
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Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
ISBN: 9781119786634