Zerox sales sells photocopiers and provides parts and services to its customers. The company has 30 employees and provide employees with a benefit plan. You are the controller and are looking at the liability section of the balance sheet and have identified several areas for consideration.
For each of the areas answer the related questions assuming private entity GAAP is used. Indicate how your answer would be different if the company used IFRS

As part of a promotion in the parts department the past three years, coupons have been given for each service call that Xerox provided to customers. Service calls are billed to the customer at $85 per call. After ten service calls the customer will be entitled to the next call free of charge. The company made 2,500 service calls during the year. It expects that 65% of the customers will redeem the coupons for the free service call. The cost of the labor and materials for the service call is $35.00. During the year 125 customers redeemed their coupons.

A) Record all journal entries related to coupons / premiums.

Answer rating: 100% (QA)

Particulars Debit S Credit Cash 250085 2 212500 Sales 21... View the full answer