Surf Company included one coupon in each box of laundry soap sold at P100 per box....
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Surf Company included one coupon in each box of laundry soap sold at P100 per box. A towel was offered as a premium to customers who send in 10 coupons and a remittance of P10. Distribution cost of premium is P5. Experience indicated that only 30% of the coupons will be redeemed. Boxes of soap sold Numbers of towels purchased at P50 each Coupons redeemed 2017 2018 200,000 250,000 5,000 8,000 40,000 70,000 1. Journalize the sales, purchase of premiums, redemption of premium, and accrual of premium in 2017 and 2018. 2. Compute for the total premium expense for 2017 and 2018 3. Compute for the estimated premium liability on December 31, 2017 and 2018. Surf Company included one coupon in each box of laundry soap sold at P100 per box. A towel was offered as a premium to customers who send in 10 coupons and a remittance of P10. Distribution cost of premium is P5. Experience indicated that only 30% of the coupons will be redeemed. Boxes of soap sold Numbers of towels purchased at P50 each Coupons redeemed 2017 2018 200,000 250,000 5,000 8,000 40,000 70,000 1. Journalize the sales, purchase of premiums, redemption of premium, and accrual of premium in 2017 and 2018. 2. Compute for the total premium expense for 2017 and 2018 3. Compute for the estimated premium liability on December 31, 2017 and 2018.
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Answer rating: 100% (QA)
1 Date Account Titles and Explanation 2017 CashAccounts receivable Sales revenue 200000 x P100 To re... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
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