The marketing department of Sunland and Company has developed a strategy to increase sales. For every...
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The marketing department of Sunland and Company has developed a strategy to increase sales. For every $100 of purchases made by a customer, the customer receives a $5 gift card with no expiration date. Sunland assumes the redemption rate on the gift card is 90%. Sunland has the following information: ● Sales of $9,400,000 for 2025 Gift card redemptions of $56,400 for 2025 Gift card liability at December 31, 2024 of $47,000 What is the amount of the liability at December 31, 2025? The marketing department of Sunland and Company has developed a strategy to increase sales. For every $100 of purchases made by a customer, the customer receives a $5 gift card with no expiration date. Sunland assumes the redemption rate on the gift card is 90%. Sunland has the following information: ● Sales of $9,400,000 for 2025 Gift card redemptions of $56,400 for 2025 Gift card liability at December 31, 2024 of $47,000 What is the amount of the liability at December 31, 2025?
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
Posted Date:
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