Cullumber Bakery began selling gift cards in 2025. Based on industry norms, they expect that 40% of the gift cards will not be redeemed. In 2025, the bakery sold gift cards with a value of $1000. During that period, gift cards with a value of $250 were redeemed. The amount of revenue that Cullumber will recognize in 2025 with regard to the gift cards is
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Cullumber Bakery began selling gift cards in 2025. Based on industry norms, they expect that 40% of the gift cards will not be redeemed. In 2025, the bakery sold gift cards with a value of $1000. During that period, gift cards with a value of $250 were redeemed. The amount of revenue that Cullumber will recognize in 2025 with regard to the gift cards is
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- Crane Bakery began selling gift cards in 2025. Based on industry norms, they expect that 30% of the gift cards will not be redeemed. In 2025, the bakery sold gift cards with a value of $2000. During that period, gift cards with a value of $500 were redeemed. The amount of revenue that Crane will recognize in 2025 with regard to the gift cards is O $650 O $500 O $2000 O $714GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2024, GoodBuy sold $1,040,000 of gift cards, and $900,000 of the gift cards were redeemed for products. As of December 31, 2024, $33,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards will never be redeemed. How much gift card revenue should GoodBuy recognize in 2024?MOA sells gift cards that are redeemable only at its stores. The company's policy is to record the redemption amount as realized. MOA sold P1,800,000 worth of gift certificates in 2019 and redeemed P1,560,000 worth of gift certificates. The value of outstanding gift certificates as of January 1, 2019 is P520,000. The company's gross profit margin is 40%. What is the obligation for outstanding gift cards at the end of the fiscal year on December 31, 2019?
- Sandhill Company sells goods to Blossom Company during 2025. It offers Blossom the following rebates based on total sales to Blossom. If total sales to Blossom are 9,300 units, it will grant a rebate of 2%. If it sells up to 20,600 units, it will grant a rebate of 4%. If it sells up to 28,000 units, it will grant a rebate of 6%. In the first quarter of the year, Sandhill sells 10,100 units to Blossom at a sales price of $90,900. Sandhill, based on past experience, has sold over 39,000 units to Blossom, and these sales normally take place in the third quarter of the year. What amount of revenue should Sandhill report for the sale of the 10,100 units in the first quarter of the year? Revenue $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?An entity, a grocery retailer, operates a customer loyalty program. The entity grants program members loyalty points when they spend s specified amount on groceries. The points have no expiry date. During 2022, the sales amounted to 7,000,000.00 based on stand -alone selling price. During the year, the entity granted 10,000 points. But management expected that only 80% or 8,000 points will be redeemed. The stand alone selling price of each loyalty points is estimated at P100.On December 31, 2022, 4,800 points have been redeemed. In 2023, management revised its expectations and now expected that 90% or 9,000.00 will be redeemed altogether. During 2021, the entity redeemed 2,400 points.What amount should be reported as sales revenue including the revenue earned from points for 2022? What is the revenue earned from loyalty points for 2023?
- Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $420,000. During 2024, Halifax sold merchandise on account for $12,700,000. Halifax's merchandise costs are 60% of merchandise selling price. Also during the year, customers returned $619,000 in sales for credit, with $342,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the yearHalifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $400,000. During 2024, Halifax sold merchandise on account for $13,400,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $661,000 in sales for credit, with $365,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year. Required: Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at year end. What is the amount of…Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $390,000. During 2024, Halifax sold merchandise on account for $13,300,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $386,000 in sales for credit, with $213,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at year end. 2. What is the…
- Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $450,000. During 2024, Halifax sold merchandise on account for $13,000,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $514,000 in sales for credit, with $283,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Record the year-end adjusting entry for estimated returns. Can someone please help me with this adjusting entry? I'm having difficulty with thisTo 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 pointsHalifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2024 with a refund liability of $410,000. During 2024, Halifax sold merchandise on account for $13,500,000. Halifax's merchandise costs are 65% of merchandise selling price. Also during the year, customers returned $532,000 in sales for credit, with $294,000 of those being returns of merchandise sold prior to 2024, and the rest being merchandise sold during 2024. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2024 of merchandise that was sold prior to 2024; (b) record actual returns in 2024 of merchandise that was sold during 2024; and (c) adjust the refund liability to its appropriate balance at year end. 2. What is the…