Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A and Company B have reached an agreement on gathering activities, and Company A will provide every consumer A fee of $1,500 can earn

Company A and Company B have reached an agreement on gathering activities, and Company A will provide every consumer A fee of $1,500 can earn 1 point for the gathering activity. Customers who earn 4 points for each episode can pay $1,000 to Company B For purchases of $1,500 worth of goods, there is no expiration date for the points, and the estimated exchange rate is 80%. The companys sales amount was $8,000,000, 4,500 points were issued, and 1,440 points were exchanged. Suppose this The item set point activity is the consideration that Company A collects points for itself. For each commodity exchanged by the customer, The company must pay company B $300. Let me ask: What kind of profit and loss should be recognized by Company A in this gathering activity in year X1? (A) Benefit $7,746,875 (B) Benefit $7,638,875 (C) Benefit $7,392,000 (D) Benefit $6,388,875

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-26

Authors: Douglas J. McQuaig, Patricia A. Bille

6th Edition

0395796997, 978-0395796993

More Books

Students also viewed these Accounting questions

Question

List five things a leader should delegate.

Answered: 1 week ago

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago