Question
BEBE Co., sells its products in reusable, expensive containers. The customer charged a deposit for each container delivered and receives a refund for each container
BEBE Co., sells its products in reusable, expensive containers. The customer charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. BEBE Co., accounts for the containers not returned within the time limit as being retired by sale at the deposit amount. Information for 2019 as follows: Deposits for containers at December 31, 2018 from deliveries in: 2017Php 150,000 2018Php 430,000 Php 580,000 Deposits for containers delivered in 2019 Php 780,000 2017Php 90,000 2018Php 250,000 2019Php 286,000 Php 626,000
*What amount should BEBE Co., report as a liability for deposits on returnable containers at December 31, 2019?
Candice Company, a grocery retailer, operates a customer loyalty program. The entity grants program member 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. During 2020, the sales amounted to Php 7,000,000 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 point is Php 100. On December 31, 2020, 4,800 points have not been redeemed. In 2021 management revised its expectations and now expected that 90% or 9,000 points will be redeemed altogether. During 2021, the entity redeemed 2,400 points *What amount should be reported as sales revenue including the revenue from points for 2020?
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