A.P75,000 and P 75,000B.P 135,000 and P 135,000C.P 210, 000 and P 75,000D.P 135,000 and P 210,000 Lance co inaugurated a promotional campaign on January 2, 2019 to promote thestability of their product. Lance Company placed a coupon redeemable for apremium in each package of cereal sold at P 200 Each premium costs P 25 and a 10coupons must be presented by a customer to receive a premium. Lance estimatedthat only 70% of the coupons issued would be redeemed. For the 6 months endedJuly 31, 2019, the following transactions occurred:Packages of Cereal sold120,00030,00d54,000Premium PurchasedCoupons redeemedHow much should be reported as premium expense and estimated liability forcoupons on the fiscal year ended July 31, 2019, respectively?

Lance Co has estimated Premium expenses at 70% of Sales. 10 coupons of are given to the customer ,…

Answered: nce Company placed a coupon re- cereal…

nce Company placed a coupon re- cereal sold at P 200 Each premiu by a customer to receive a premi s issued would be redeemed. For

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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In an effort to increase sales, ABC Company inaugurated a sales promotional campaign on June 30, 2021. ABC Company placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost ABC Company P20 and five coupons must be presented by a customer to receive a premium. ABC Company estimated that only 60% of the coupons issued will be redeemed. For the six months ended December 31, 2021 the following information is available. Package of cereal sold Premiums purchased Coupons redeemed 160,000 12,000 40,000 What is the estimated liability for premiums on December 31, 2021?
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In an effort to increase sales, Mills Company inaugurated a sales promotional campaign on June 30, 2013. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost P20 and five coupons must be presente customer to receive a premium. The entity estimated that only 60% of the coupons issued would be redeemed. For the six mon ended December 31, 2013, the following information is available: Packages of cereal sold Premiums purchased Coupons redeemed 160,000 12,000 40,000 What is the estimated liability for premiums on December 31, 2013?
Carla Vista Company sells goods to Pearl Company during 2020. It offers Pearl the following rebates based on total sales to Pearl. If total sales to Pearl are 11,200 units, it will grant a rebate of 2%. If it sells up to 19,600 units, it will grant a rebate of 4%. It if sells up to 29,200 units, it will grant a rebate of 6%. In the first quarter of the year, Carla Vista sells 9,000 units to Pearl at a sales price of $90,000. Based on past experience, Carla Vista has sold over 40,000 units to Pearl, and these sales normally take place in the third quarter of the year.
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