Brandin Grocers gives one loyalty point to its customers for every dollar spent in the store. The loyalty points will not expire. Customers can redeem these points and are eligible to receive a box of cookies if they redeem 100 points. Brandin Grocers purchase these cookie boxes from the baker @ $3 a box. Because the offer is so popular, 98 per cent of the customers redeem their loyalty points to get the box of cookies.In the month of December 20x1, the total sales recorded in the Store were $ 442,000. You are required to calculate the liability amount and provide the necessary entries.
Q: Key figures for Apple and Google follow. $ millions Cash and equivalents Accounts receivable, net…
A: The Statement of Financial Position - The statement of financial position is the position of the…
Q: Nicholas Technologies operates two divisions: Hardware Services and Software Services. During the…
A: Income statement is the financial statement that records all the income and expenses of the company.…
Q: Problem 1. a. Grapicsco Co. acquired a 3-D printer for $20,000 on January 2013. The printer had an…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Required information [The following information applies to the questions displayed below.] At…
A: Accounts receivable are an asset of the company. The company should record all the accounts…
Q: Rachet Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from…
A: On the balance sheet of an organization, the inventory is categorized as a current asset. As items…
Q: Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500. If…
A: The bonds are the financial instruments for the business that are used to raise money from the…
Q: Straight Line Units of Production DDB
A: Introduction: - Depreciation is a non-cash expense. Depreciation is charged on fixed asset over a…
Q: Total assets, January 1 Total assets, December 31 Net sales Gross margin Net income $ 125,000 75,000…
A: Assets turnover ratio: Assets turnover ratio measures the efficiency of a company's assets to…
Q: The following data are accumulated by Lone Star Security in evaluating two competing investment…
A: AVEREAGE RATE OF RETURN THIS IS ONE OF THE METHOD OF CAPITAL BUDGETING. THIS METHOD MEASURES THE…
Q: Diaz Company owns a machine that cost $125,400 and has accumulated depreciation of $90,900. Prepare…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: ock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a…
A: Operating Profit = Sales Revenue - Interest Cost - Operating cost
Q: In 2022, Carson is claimed as a dependent on his parents' tax return. His parents report taxable…
A:
Q: Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours…
A: Variances are the variation between the costs estimated and the costs actually incurred by the…
Q: College Coasters is a San Diego–based merchandiser specializing in logo-adorned drink coasters. The…
A: Journal Entries -Journal Entries are used to record transactions entered into by the company. It is…
Q: The following relates to taxpayer 500,000 Interest expense 200,000 interest income-promissory notes…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Jillet Corporation began the year with inventory of 16,000 units of its only product. The units cost…
A: ANSWER:- Ending inventory =199,820 Cost of Goods Sold (75,000 units) = 735,700 Income before…
Q: 800 units 900 units chown that th
A: Answer : Calculation of Beginning inventory for September Beginning inventory for September =…
Q: Belray Company reports the following components of stockholders' equity on January 1. Common…
A: Stockholders' equity describes the assets that are still held by a company after all liabilities…
Q: Lee Company pays its employees on a variable commission scale: 6% on the first $40,000 sales, 7% on…
A: Introduction: As per variable commission pay mechanism, employees are paid on the basis of total…
Q: A local museum has its historical collections on display for the museum visitors. The majority of…
A: There are a few reasons why the not for profit would only show $1 for the historical collections.…
Q: lated interest at the end of the quarter. Required: Using the data above: 1. Complete the following…
A: December January February March April Sales 60000 70000 80000 85000 55000 Less:…
Q: a. Allocate the cost of service departments to operating departments using Step- method and compute…
A: Meaning of Cost allocation Allocating the cost of service department into operating/ production…
Q: Sweet Company’s outstanding stock consists of 1,800 shares of cumulative 5% preferred stock with a…
A: Dividend per share: Dividend per share is calculated for Preferred stock as well as Common Stock.…
Q: A local Non for Profit had the following activity in October 2022: Cash Donations $200,000…
A: Not-for-profit refers to an organization that is dealing with not earning profits for its owners…
Q: Assuming the CPI is 144 at that time, prepare the appropriate journal entries related to the lease…
A: Lease is the contract between the two parties that is lessee and the lessor. The lessee is the one…
Q: Brandin Grocers gives one loyalty point to its customers for every dollar spent in the store. The…
A: The sales revenue is the amount that is received by the company from the sales. The sales revenue is…
Q: Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent…
A: Cost driven is the factor on which the costs of an organization are allocated. It represents as a…
Q: Which of the four costing methods is best for an organization to use? Why?
A: The costing methods are the methods that are used by companies to determine the true cost related to…
Q: Required information Exercise 11-23 (Algo) Change in estimate; useful life and residual value of…
A: Depreciation under straight line method Under this method a fixed depreciation is charged over the…
Q: On June 30, the board of directors of Dive Inn, Inc., declared a cash dividend of $0.20 per share on…
A: Dividends are part of the profit distributed by the company among the shareholders of the company.…
Q: The records of Family Manufacturing show the following information: Estimated manufacturing overhead…
A: Lets understand the basics. Applied overhead need to calculate to allocate cost on the product or…
Q: The contribution margin for Product A is $50 per hour and $45 per hour for Product B. The machine…
A: Lets understand the basics. This question relates to deciding which product to produce first and and…
Q: Grace Kelley earns $2,000 per week. She is married and claims 2 exemptions. What is Grace’s income…
A: The total amount of taxes that are owed to federal, state, and local governments by individuals and…
Q: Diaz Company owns a machine that cost $125,300 and has accumulated depreciation of $92,700. Prepare…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: purchases $94,00 erials as direct ma purchase of raw
A: Answer : Raw material purchase = $94000 Indirect material = $25000 Direct material =$62,400
Q: The following information is provided for each Investment Center. Investment Center Cameras Phones…
A: Return on investment is used for finding out how efficiently the investment was put to use. The…
Q: Mannassass Company manufactures chairs. The following information was given for the company: Units,…
A: Equivalent units of completion means the units on which the work has been done in a particular year.…
Q: Misty Company reported the following before-tax items during the current year: Sales revenue $ 600…
A: The income statement's net income category known as "income from continuing operations" is where a…
Q: USCO manufactures and markets electrical components. USCo operates outside the United States through…
A: The foreign personal holding company focused on owning the stock of the other companies. It is said…
Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2022.…
A: Self-employment tax refers to a tax that is paid by sole proprietors or small business owners to…
Q: 3. Prepare a pension spreadsheet to assist you in determining end of 2024 balances in the PBO, plan…
A: Introduction Compensation obligation expected. The pension benefit obligation, or PBO, is the actual…
Q: Oriole Company reported the following amounts for May: Raw materials purchased Beginning raw…
A: Cost of goods manufactured: Cost of goods manufactured means total manufacturing costs; including…
Q: A building is acquired on January 1 at a cost of $1,030,000 with an estimated useful life of eight…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: A company that uses job order costing reports the costs incurred below. Overhead is applied at the…
A: Job Cost Sheet Job 1 Job 2 Job 3 Direct Materials $6,300 $8,300 $2,800 Direct Labor $11,100…
Q: Which of the following is/are true statements: A) Revenue sources for non for profit organizations…
A: The variance shows the difference between the actual and the budgeted figures of both the data as…
Q: Swifty Incorporated purchased equipment for $1913000 in 2020. Four years later accumulated…
A: Impairment loss: It is the loss incurred when the market value of an asset is less than its…
Q: Required information [The following information applies to the questions displayed below] Jimmer has…
A: Roth IRA refers to the specified individual retirement account. Generally, the contributions made…
Q: Tharaldson Corporation makes a product with the following standard costs: Standard Quantity or Hours…
A: Variable overhead variances are the variations between the cost budgeted for the variable overhead…
Q: Cost of Goods Manufactured, using Variable Costing and Absorption Costing On March 31, the end of…
A: Units cost of goods manufactured based on :- (a)Variable costing = $ 202 (b) Absorption Costing = $…
Q: Could you include the calculations for the direct materials budget, please? especially for the…
A: A direct material purchase budget is a type of budget that shows the estimated procurement of…
Brandin Grocers gives one loyalty point to its customers for every dollar spent in the store. |
The loyalty points will not expire. Customers can redeem these points and are eligible to receive a box of cookies if they redeem 100 points. Brandin Grocers purchase these cookie boxes from the baker @ $3 a box. Because the offer is so popular, 98 per cent of the customers redeem their loyalty points to get the box of cookies.In the month of December 20x1, the total sales recorded in the Store were $ 442,000. You are required to calculate the liability amount and provide the necessary entries.
Step by step
Solved in 2 steps
- (Customer Loyalty Program) Martz Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2017, customers purchase products for $300,000 (with a cost of $171,000) and earn 30,000 points redeemable for future purchases. Martz expects 25,000 points to be redeemed. Martz estimates a standalone selling price of $2.50 per point (or $75,000 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Martz concludes that the points are a separate performance obligation.Instructions(a) Determine the transaction price for the product and the customer loyalty points.(b) Prepare the journal entries to record the sale of the product and related points on July 2, 2017.(c) At the end of the first reporting period (July 31, 2017), 10,000 loyalty…Brandin Grocers gives one loyalty point to its customers for every dollar spent in the store. The loyalty points will not expire. Customers can redeem these points and are eligible to receive a box of cookies if they redeem 100 points. Brandin Grocers purchase these cookie boxes from the baker @ $3 a box. Because the offer is so popular, 98 per cent of the customers redeem their loyalty points to get the box of cookies. In the month of December 20x1, the total sales recorded in the Store were $ 442,000. You are required to calculate the liability amount and provide the necessary entries.EM Company, a grocery retailer, operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for further groceries. The points have no expiry date. During2019, the sales amounted to P7,000,000 and the entity have granted 10,000points. Management expects that only 80% of the points will be redeemed. The cost of each loyalty point is P100. As of December 31, 2019, 4,800 points have already been redeemed. In2020, the management revised its expectations to 90% of the points will be redeemed. As of December 31, 2020, the entity redeemed 2,400 points. What amount should be reported as revenue earned from loyalty points in 2020? A.P700,000B.P210,000C.P175,000D.P200,000
- Bezamon Shoes Shop has a customer loyalty program in which it issues points to customers for every cash purchase that can be applied to future purchases. For every dollar spent, a customer receives one point. Each point is worth three cents. There is no expiry date on the points. Bezamon estimates that 30% of the points issued will eventually be redeemed. The program was started in 2020. During 2020, 8oo,000 points were issued. Sales for 2020 were $400,000. In 2021, 1.3 million points were issued. Total sales for 2021 were $500,000. Bezamon has a December 31 year end. Required: 1. What is the stand-alone value of the points issued in 2020? In 2021? 2. Prepare the journal entries to record the sales for 2020 and 2021. 3. When the points are redeemed, how is this accounted for? What is the impact of the point redemptions on profit and cash flow?Martz Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2020, customers purchase products for $300,000 (with a cost of $171,000) and earn 30,000 points redeemable for future purchases. Martz expects 25,000 points to be redeemed. Martz estimates a standalone selling price of $2.50 per point (or $75,000 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Martz concludes that the points are a separate performance obligation. Instructions a. Determine the transaction price for the product and the customer loyalty points. b. Prepare the journal entries to record the sale of the product and related points on July 2, 2020. c. At the end of the first reporting period (July 31, 2020), 10,000 loyalty points are…A vendor is running a promotion whereby a consumer who purchases three boxes of golf balls at P20 per box in a single transaction receives an offer for one free box of golf balls if the customer fills out a request form and mails it to the vendor before a set expiration date (a mail-in rebate). The vendor estimates, based on recent experience with similar promotions, that 80% of the customers will complete the mail-in rebate required to receive the free box of golf balls. How much of the transaction price is allocated to the mail-in rebate?
- DJC Ltd., which uses IFRS, operates a coffee shop and began a promotion to increase the sales of its dark roast coffee in December 20X1. Every time that a customer buys a cup of this type of coffee for $2.00 each in December, the customer gets a coupon for 1 free mini cookie that usually sells for $.40 each and costs the company $.20 to produce. Customers cannot use or redeem the coupons until January 20X2. In December 20X1, the company sold 2,800 cups of dark roast coffee. Management expects customers will redeem 90% of the coupons based on many promotions like this that the company has had in the past. In the blank box below, please provide the amount asked for (when entering amounts please do not use commas, negative signs or dollar signs or cents - please round your answer to the nearest dollar). Blank 1: The sales revenue for the dark roast coffee in the month of December 20X1.3) A newly opened grocery store, to attract customers, started giving 5 loyalty points for each dollar spent in the store. These points can be redeemed in blocks of 5000 and customers are eligible to receive a winter jacket. Since it was newly opened it did not have any past record of how many customers will exercise this offer, but because of the winter season round the corner, it is hoping that 90% of the people will make use of this redemption offer. The store purchases these jackets directly from the manufacturer at $40 per each. In the month of October, the total sales of the store were $480,000. Please calculate the loyalty redemption amount that the store needs to provide for October in its books of accounts.To keep up with sales trends, Sunland Inc., a public company following IFRS, implemented a customer loyalty program that rewards a customer with one loyalty point for every $30 of purchases. Each point is redeemable for a $1 discount on any purchases of Sunland merchandise in the next two years. Following the implementation of the program, during 2023, customers purchased products for $315,000 and earned 10,500 points redeemable for future purchases. (All products are sold to provide a 40% gross profit.) The stand-alone selling price of the purchased products is $315,000. Based on prior experience with incentive programs like this, Sunland expects 9,000 points to be redeemed related to these sales. (a) Measure the separate performance obligations in the Sunland bonus point program. (Round percentage allocations to 2 decimal ploces, e.g. 25.55 and final answers to O decimal places, eg. 25,000.) Products Bonus points
- RPS co-op introduced a loyalty program in 2020. every customer who signed up would receive 3% of their total purchases as a cheque, each February for the previuos year, that could br used in sotre on any merchandise eithin the next nine months. customers could look online during the year and check their balance at any time. Laura signed up for the program in 2020. when she purchased a kayak in July for 1100. later in september she purchased a mountain bike for 2200. in March 2021 she purchased a paddle board for 2100 and used her cheque toward the purchase. A) Record the sale of Kayak and loyalty points. B)Record sale of mountain bike and loyalty points C) Record the sales of paddleboard, use of rewards points, cheque towards its purchase and the rewards points earned on sale. D) In 2020 RPS Co-op had a total pf 497,000 in sales to customers who had signed up with the loyalty program. What is the amount of liability that woudl be created by these sale?Kane Candy Company sells candy bars for $1 each. In addition, Kane offers its customers a coffee mug in exchange for $2 and 10 candy wrappers. A coffee mug costs Kane $2.40, and the company estimates that customers will redeem 60 percent of the candy wrappers. During 2020, Kane purchased 720,000 mugs, sold 5,600,000 candy bars, and redeemed 2,800,000 candy wrappers. Instructions: 1. Prepare the journal entry to record the purchase of the coffee mugs. 2. Prepare the entry to record the sale of the candy bars. 3. Prepare the entry to record the redemption of candy wrappers, the receipt of $2 per 10 wrappers, and the delivery of the coffee mugs. 4. Prepare the adjusting entry to record additional premium expense and the estimated premium liability at Dec. 31, 2020. LXYZ Ltd. is a health foods distributor and retailer initiated a customer loyalty program that offers member points to redeem a bottle of its ‘X-Premium’ wine. The premium wine costs the company $30 per bottle and retails for $80 per bottle. Points are issued only during the month of December 20x0 and the redemption period is valid until February 20x1. Every $10 dollars spent in December will entitle the customer one point, and a bottle of the premium wine may be redeemed without cost with 100 points. December sales amounted to $210,560 and 21,000 points were issued. XYZ expects 80% if the points to be redeemed. At the end of December 20x0, 10,000 points were used for redemption. 4,000 and 2,000 points were redeemed in January and February respectively. Required: a) Prepare the Journal entries to record the sales in December, January and February 20X1. b) Discuss what if in February, 3,000 points were redeemed instead?