Customers pay $50 to play a room and receive a 40% off their next visit. As at
Fantastic news! We've Found the answer you've been seeking!
Question:
Customers pay $50 to play a room and receive a 40% off their next visit. As at December 31, 2020, 80,000 tickets were issued and say only 25,000 coupons were redeemed. Other entertainment-based business suggests that normally 20% of coupons get redeemed. Company recorded the initial sale at $50. When the sale gets reported on the income statement net of discount. Is this correct and what would the adjusting entry have to be made?
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date: