Question
BOOK Co. follows IFRS and prepares adjusting entries monthly. Starting on January 1, 2019, BOOK offers a new loyalty card where for every 7 books
BOOK Co. follows IFRS and prepares adjusting entries monthly. Starting on January 1, 2019, BOOK offers a new loyalty card where for every 7 books purchased by the customer, the customer receives one book free. Based on industry data, 75% of customers are expected to redeem the free book. All books sell for $10.
In January 2019, 100 books were sold for $1000 cash. (Cost of product was $400.)
In February 2019, customers redeemed 8 of the free books (cost of product was $32).
Required: Show and label all calculations.
- Prepare the journal entries for BOOK for the above transactions for:
- January 2019
- February 2019 redemptions
- What is the gross profit for January 2019 for BOOK?
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Making Sense Of Audit Business Side Of General Practice
Authors: Donald Sal Irvine
1st Edition
1870905121, 978-1870905121
