Ivanhoe offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers...
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Ivanhoe offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers presented by customers together with $2.65. The candy bars are sold by the company to distributors for 30¢ each. The purchase price of each download code to the company is $2.40. In addition, it costs 50¢ to distribute each code. The results of the premium plan for the years 2025 and 2026 are as follows. (All purchases and sales are for cash.) MP3 codes purchased Candy bars sold Wrappers redeemed 2025 wrappers expected to be redeemed in 2026 2026 wrappers expected to be redeemed in 2027 (a) 2025 2026 285,000 376,200 2,980,500 2,956,800 1,368,000 1,710,000 330,600 399,000 Prepare the journal entries that should be made in 2025 and 2026 to record the transactions related to the premium plan of Ivanhoe. Ivanhoe offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers presented by customers together with $2.65. The candy bars are sold by the company to distributors for 30¢ each. The purchase price of each download code to the company is $2.40. In addition, it costs 50¢ to distribute each code. The results of the premium plan for the years 2025 and 2026 are as follows. (All purchases and sales are for cash.) MP3 codes purchased Candy bars sold Wrappers redeemed 2025 wrappers expected to be redeemed in 2026 2026 wrappers expected to be redeemed in 2027 (a) 2025 2026 285,000 376,200 2,980,500 2,956,800 1,368,000 1,710,000 330,600 399,000 Prepare the journal entries that should be made in 2025 and 2026 to record the transactions related to the premium plan of Ivanhoe.
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Journal Entries for Ivanhoes MP3 Premium Plan 2025 Purchase of MP3 download codes Debit Premium Inve... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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