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$\backslash$table$[[$DATE$,$PARTICULARS,PR$,$DEBIT,CREDIT$],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,]]$

Show calculations here a$)$ Calculate the amount of $JJ$ Dollars that were given away in October

b$)$ Calculate the amount of $JJ$ Dollars from October that will be redeemed $($based on the estimate given$).$

c$)$ & d$)$INTRODUCTION

J & J$\text{'}$s department store is a successful retail business located in Ontario. They currently have three

locations: Toronto, Waterloo and Ottawa. They make use of a frequent shopper program called JJ Dollars

which it gives out on every sale. Recently, they have thought of opening a fourth store but would need to

look at how to finance the purchase.

PART A: Short$-$Term Notes Payable

$J$ & J$\text{'}$s recently purchased a large lot of new inventory. In order to make the purchase they signed an

eight$-$month promissory note with a $4\%$ interest rate for $$100,000$ on October $1^{st}.$ Interest is payable on

maturity of the note.

Instructions: ON A GENERAL JOURNAL

a$)$ Record the creation of the note payable

b$)$ Record the accrual of interest on December ${31}^{st}.$

c$)$ Record the full repayment of the note on June $1^{st}.$

GENERAL JOURNAL PAGE

DATE PARTICULARS PR DEBIT CREDIT Show calculations here

$$

PART B: Uncertain Liabilities

As previously mentioned, with every purchase J&J$\text{'}$s gives out JJ Dollars, which can be redeemed on future

purchases from the store. $4\%$ of all cash sales are given out in JJ Dollars. J&J$\text{'}$s estimates that $95\%$ of all $JJ$

Dollars will be redeemed in the future.

In October, J&J$\text{'}$s made a total of $$50,000$ in cash sales. Also, a total of $$1,500$ of JJ Dollars were redeemed

in October.

Instructions:

a$)$ Calculate the amount of $JJ$ Dollars that were given away in October.

b$)$ Calculate the amount of $JJ$ Dollars from October that will be redeemed $($based on the estimate

given$).$

c$)$ Record the journal entry to recognize the $JJ$ Dollars that were given out in October.

d$)$ Record the journal entry to recoqnize the $JJ$ Dollars that were redeemed in October.

a$)$ Calculate the amount of JJ Dollars that were given away in October

Dollar value of points given:

b$)$ Calculate the amount of JJ Dollars from October that will be redeemed $($based on the estimate given$).$

Dollar value of points redeemed:

c$)$ & d$)$

DATE PARTICULARS PR DEBIT CREDIT