XYZ Inc offers a gift set to customers who send in $1.07 plus three coupon codes obtained from the purchase of the company's standard products.That is, a customer purchases three standard products which come with a coupon each, sends everything in along with the cheque for the amountabove, and receives the gift set in the mail a few weeks later. During the year, the company acquired an adequate number of gift sets for $2.55 eachusing cash to meet the promotion's demand. During the year, the company sold 1,031,460 of its standard products for $4.03 each. The companyestimated that 10% of the sales amount received from customers would relate to the gift set to be awarded. The company would expect 33.35% ofthe coupons to be sent in eventually, and, during the year, 247,550 coupons were redeemed. If the company followed IFRS using the revenueapproach, how much promotion expense would be recorded for the year for the redeemed coupons?O a.$122,125O b. $119,072$116,018O d. $125,178O e. $112,965

The company is selling their main products along with a coupon code. A Customer needs to send a…

estimated that 10% of the sales amount received from customers would relate to the gift set to be awarded. The company would expect 33.35% the coupons to be sent in eventually, and, during the year, 247,550 coupons were redeemed. If the company followed IFRS using the revenue approach, how much promotion expense would be recorded for the year for the redeemed coupons? O a. $122,125 O b. $119,072 O c. $116,018 O d. $125,178 Oe. $112,965

estimated that 10% of the sales amount received from customers would relate to the gift set to be awarded. The company would expect 33.35% the coupons to be sent in eventually, and, during the year, 247,550 coupons were redeemed. If the company followed IFRS using the revenue approach, how much promotion expense would be recorded for the year for the redeemed coupons? O a. $122,125 O b. $119,072 O c. $116,018 O d. $125,178 Oe. $112,965

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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XYZ Inc offers a gift set to customers who send in $1.11 plus three coupon codes obtained from the purchase of the company's standard products. That is, a customer purchases three standard products which come with a coupon each, sends everything in along with the cheque for the amount above, and receives the gift set in the mail a few weeks later. During the year, the company acquired an adequate number of gift sets for $2.63 each using cash to meet the promotion's demand. During the year, the company sold 1,062,960 of its standard products for $4.15 each. The company estimated that 10% of the sales amount received from customers would relate to the gift set to be awarded. The company would expect 34.31% of the coupons to be sent in eventually, and, during the year, 255,110 coupons were redeemed. If the company followed IFRS using the revenue approach, how much unearned revenue would be shown as a liability at the end of the year for the coupons yet to be redeemed? a. $139,185 b.…
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