ABC began marketing a new milk tea called Accountantea. Each bottle of accountantea sells for P...

Transcribed Image Text:

ABC began marketing a new milk tea called "Accountantea". Each bottle of accountantea sells for P 70. To help promote the product, the management of ABC is offering a special Accountantea reusable cup to each customer for every 10 specially marked bottles of Accountantea plus P 10. ABC estimates that out of the 700,000 bottles of Accountantea sold during 2020, only 45% of the bottle caps will be redeemed. For the year 2020, 35,000 Accountantea reusable cups were purchased by the company at a total cost of P 1,050,000. These 35,000 Accountantea reusable cups have a total sales value of P 1,750,000. A total of 30,000 Accountantea reusable cups were distributed to customers during the year 2020. In accordance with IFRS 15, what amount of unearned revenue from unredeemed premiums should ABC report on its December 31,2020 statement of financial position? ABC began marketing a new milk tea called "Accountantea". Each bottle of accountantea sells for P 70. To help promote the product, the management of ABC is offering a special Accountantea reusable cup to each customer for every 10 specially marked bottles of Accountantea plus P 10. ABC estimates that out of the 700,000 bottles of Accountantea sold during 2020, only 45% of the bottle caps will be redeemed. For the year 2020, 35,000 Accountantea reusable cups were purchased by the company at a total cost of P 1,050,000. These 35,000 Accountantea reusable cups have a total sales value of P 1,750,000. A total of 30,000 Accountantea reusable cups were distributed to customers during the year 2020. In accordance with IFRS 15, what amount of unearned revenue from unredeemed premiums should ABC report on its December 31,2020 statement of financial position?

Answer rating: 100% (QA)

Total bottles of Accountantea sold during 2020 700000 Percentage of bottle caps estimated to be ... View the full answer