Answered: At December 31, 2020, Hersheys Company…

At December 31, 2020, Hersheys Company had 1,000 gift certificates outstanding, which had been sold to customers during 2020 for P720. Laser operates on a gross margin of 60%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

B. At December 31, 2020, Hersheys Company had 1,000 gift certificates outstanding, which had been sold to
customers during 2020 for P720. Laser operates on a gross margin of 60%.

2. How much revenue pertaining to the gift certificates should be deferred at December 31, 2020?

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