Use the following template to determine the amount of revenue that must be deferred for the...
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Use the following template to determine the amount of revenue that must be deferred for the MPP: Total MP issued: Less: MP redeemed Equals: MP outstanding Less: MP expected to not be redeemed Equals: MP to be redeemed in future Equals: Number of movies to be awarded Movie Revenue to be Deferred: Record the adjusting entry to recognize the unearned revenue associated with the loyalty program. In addition, calculate the estimates "cost of sales" associated with this liability, and record the amount to "Advertising Expense" and "Estimated Loyalty Program Liability". Use the following template to determine the amount of revenue that must be deferred for the MPP: Total MP issued: Less: MP redeemed Equals: MP outstanding Less: MP expected to not be redeemed Equals: MP to be redeemed in future Equals: Number of movies to be awarded Movie Revenue to be Deferred: Record the adjusting entry to recognize the unearned revenue associated with the loyalty program. In addition, calculate the estimates "cost of sales" associated with this liability, and record the amount to "Advertising Expense" and "Estimated Loyalty Program Liability".
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Total MP issued 100000 Less MP redeemed 40000 Equals MP outstanding 60000 Less MP expected to not be ... View the full answer
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