French Taste, a new cafeteria that opened near the University of Melbourne recently, offers loyalty discounts...
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French Taste, a new cafeteria that opened near the University of Melbourne recently, offers loyalty discounts to students from the University as a means to increase sales and to encourage loyalty. The loyalty program allows customers to obtain 1 cup of coffee free after they have purchased the 5th coffee. The price of a cup of coffee is $4.00. In accordance with AASB15 Revenue from contracts with customers, prepare the accounts for French Taste when the 6th cup of coffee is provided for free with the loyalty program. Cash Revenue Deferred revenue Revenue Cash Revenue Deferred revenue Accounts receivable Revenue DR 4 DR 3.33 DR 14 DR 4 CR 4 CR 3.33 CR 3.33 0.67 CR 14 French Taste, a new cafeteria that opened near the University of Melbourne recently, offers loyalty discounts to students from the University as a means to increase sales and to encourage loyalty. The loyalty program allows customers to obtain 1 cup of coffee free after they have purchased the 5th coffee. The price of a cup of coffee is $4.00. In accordance with AASB15 Revenue from contracts with customers, prepare the accounts for French Taste when the 6th cup of coffee is provided for free with the loyalty program. Cash Revenue Deferred revenue Revenue Cash Revenue Deferred revenue Accounts receivable Revenue DR 4 DR 3.33 DR 14 DR 4 CR 4 CR 3.33 CR 3.33 0.67 CR 14
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Answer rating: 100% (QA)
As per para B39 and B40 and AASB15 Option to purchase additional goods can be in various forms and i... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
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