Sales promotions

At the bottom of all its February sales receipts, Seifert Stores Inc. printed $2-off coupons. The coupons may be redeemed March 1April 30. Seifert Stores Inc. accepts only cash, MasterCard, or VISA. During February, Seifert Stores completed the following selected transactions:

Date	Transaction
Feb. 6.	Sold merchandise to Marci Andrews with a list price of $175 that cost Seifert Stores Inc. $80. Marci presented a $5-off coupon, which she clipped out of the local newspaper. Marci used her VISA card for the purchase.
18.	Sold merchandise to Chris Johnson with a list price of $50 that cost Seifert Stores $24. The bottom of Chris Johnsons cash receipt includes the $2-off coupon. Chris paid cash for his purchase.

Assume that Seifert Stores Inc. sold $40,000,000 of merchandise in March and that 1,400,000 of the $2-off coupons were redeemed. The cost of the merchandise sold was $23,600,000.

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a. Journalize on March 31, the March sales for Seifert Stores Inc. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Mar. 31	Accounts PayableAccounts ReceivableCashSalesSales DiscountsCash
	Accounts PayableAccounts ReceivableEstimated Coupons PayableSalesSales DiscountsEstimated Coupons Payable
	Accounts PayableAccounts ReceivableCashEstimated Coupons PayableSalesSales
Mar. 31	Accounts PayableAccounts ReceivableCost of Goods SoldInventoryMiscellaneous Expense
	Accounts PayableAccounts ReceivableCost of Goods SoldInventoryMiscellaneous Expense

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The Estimated Coupons Payable account was credited in February for the expected amount of the coupon redemptions.

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b. Assume that Seifert Stores Inc. sold $33,500,000 of merchandise in April and that 440,000 of the $2-off coupons were redeemed. The cost of the merchandise sold was $19,100,000. Journalize on April 30 the April sales of Seifert Stores Inc. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Apr. 30	Accounts PayableAccounts ReceivableCashSalesSales Discounts
	Accounts PayableAccounts ReceivableEstimated Coupons PayableSalesSales Discounts
	Accounts PayableAccounts ReceivableCashEstimated Coupons PayableSales
Apr. 30	Accounts PayableAccounts ReceivableCost of Goods SoldInventoryMiscellaneous Expense
	Accounts PayableAccounts ReceivableCost of Goods SoldInventoryMiscellaneous Expense

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The Estimated Coupons Payable account was credited in February for the expected amount of the coupon redemptions.

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c. Assume that Seifert Stores Inc. sold $25,000,000 of merchandise in February, which generated 12,500,000 printed sales receipts. The merchandise sold cost $16,500,000. Siefert Stores Inc. estimates that 15% of the $2-off coupons printed in February will be redeemed before they expire April 30. What is the balance of Estimated Coupons Payable on April 30? fill in the blank 1 of 1$

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Total Estimated Coupons Payable accrued less amount of coupons redeemed.

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d. Journalize the expiration of the remaining coupons on April 30. If an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Apr. 30	Accounts PayableAccounts ReceivableCashEstimated Coupons PayableSales
	Accounts PayableAccounts ReceivableCashEstimated Coupons PayableSales

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Recall that the value of expired coupons are returned to Sales.

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Partially correct

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