Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane sells 20 nonrefundable $110 gift cards for 3D printer paper on March 1, 2025. The paper has a standalone selling price of $110 (cost

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Crane sells 20 nonrefundable $110 gift cards for 3D printer paper on March 1, 2025. The paper has a standalone selling price of $110 (cost \$88). The gift cards expiration date is June 30, 2025. Crane estimates that customers will not redeem 15% of these gift cards (breakage). The pattern of redemption is as follows. Prepare the 2025 journal entries related to the gift cards at March 1, March 31. April 30, and June 30, Crane recognizes breakage when cards expire (June 30). (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the occount titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, es. 1.25124 and final answers to 0 decimal places eg. 58,971. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) \begin{tabular}{|c|c|c|c|} \hline Date & Account Titles and Explanation & Debit & Credit \\ \hline \multirow[t]{2}{*}{ar.1,2025} & Cash & 2200 & \\ \hline & Lability to Bonus Point Customers & & 22 \\ \hline \multirow[t]{3}{*}{x.1.20257} & Contract Asset & 330 & \\ \hline & Sales Revenue & & 3 \\ \hline & (To record sales of cards redeemed) & & \\ \hline \multirow[t]{3}{*}{ar31,2025} & Contract Asset & 1100 & \\ \hline & Sales Revenue & & \\ \hline & (To record cost of goods sold) & & \\ \hline an: 31.2025 & Cost of Goods Sold & 880 & \\ \hline \end{tabular} r. 30.2025 Cost of Goods Sold 528 Inventory (To record saies of cards redeemed) n. 30.2025; Cost of Goods Sold 110 inventory (To record cost of goods sold) goods sold) ns.30,2025 Y Contract Asset 88 Sales Revenue (To record sales of cards not redeemed) ar. 31,2025 Cost of Goods Sold 880 Inventory (To record sales of cards redeemed) Contract Asset 660 5 ales Revenue (To record cost of goods sold) if. 30.2025 Cost of Coods Sold 528 inventory (To record sales of cards redeemed) . 30,2025

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

Step: 3

blur-text-image

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

Financial Accounting

Authors: Karen Bird, Gene Imhoff

5th Edition

0984200568, 978-0984200566

More Books

Students also viewed these Accounting questions

Question

Do I own something similar already?

Answered: 1 week ago