Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i have the account titles but looking for the amounts! Pharoah Music Shop gives its customers coupons redeemable for a poster plus a Bo Diddley

i have the account titles but looking for the amounts! image text in transcribed
image text in transcribed
image text in transcribed
Pharoah Music Shop gives its customers coupons redeemable for a poster plus a Bo Diddley CD. One coupon is issued for each dollar of sales. On the surrender of 100 coupons and $6.00 cash, the poster and CD are given to the customer. It is estimated that 80% of the coupons will be presented for redemption. Sales for the first period were $710,000, and the coupons redeemed totaled 405,000 . Sales for the second period were $910,000, and the coupons redeemed totaled 740,000 . Pharoah Music Shop bought 20,000 posters at $3.0/ poster and 20,000CD at $8.0/CD. Prepare the following entries for the two periods, assuming all the coupons expected to be redeemed from the first period were redeemed by the end of the second period. To record coupons redeemed. (Credit account titles are automatically indented when the amount is entered. Do not indent manual) Period 2 Account Titles and Explanation Debit Credit Cash Premium Liability Premium Expense Inventory of Premiums

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

ISE Business Accounting

Authors: Frank Wood, Alan Sangster

8th Edition

0273638408, 9780273638407

More Books

Students also viewed these Accounting questions

Question

Let A be a nonsingular matrix. Show that det(A-1) = 1 / det(A)

Answered: 1 week ago

Question

2. How does an RM strategy differ from a TM strategy?

Answered: 1 week ago

Question

Under what circumstances is polygraph testing of employees legal?

Answered: 1 week ago