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Using Excel to Account for Estimated Liabilities for a Rebate Program Student Work Area Required: Provide input into cells shaded in yellow in this template.
Using Excel to Account for Estimated Liabilities for a Rebate Program Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem and work areas as indicated. PROBLEM Seasons Books sold a best-selling novel in July. Included in each book was a mail-in rebate for a future book purchase if the customer sends in proof of purchase with a completed rebate form. Seasons has provided the following sales and rebate information and its estimate of the purchasers will claim the rebate. a. Calculate the sales revenue and the unearned revenue related to the loyalty program that Seasons earned in July on this book. Stand-alone book sales Stand-alone value of rebates Number of copies sold 50,000 Total value Selling price per novel $ 8.00 Value of mail-in rebate $ 2.00 Allocation: Estimate of rebate claims 10% Earned revenue Unearned revenue b. Prepare the journal entry to record the sale and the unearned revenue Seasons Books should record. Date Debit Credit July
| Using Excel to Account for Estimated Liabilities for a Rebate Program | Student Work Area | ||||||||||||
| Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem and work areas as indicated. | |||||||||||||
| PROBLEM | |||||||||||||
| Seasons Books sold a best-selling novel in July. Included in each book was a mail-in rebate for a future book purchase if the customer sends in proof of purchase with a completed rebate form. Seasons has provided the following sales and rebate information and its estimate of the purchasers will claim the rebate. | |||||||||||||
| a. | Calculate the sales revenue and the unearned revenue related to the loyalty program that Seasons earned in July on this book. | ||||||||||||
| Stand-alone book sales | |||||||||||||
| Stand-alone value of rebates | |||||||||||||
| Number of copies sold | 50,000 | Total value | |||||||||||
| Selling price per novel | $ 8.00 | ||||||||||||
| Value of mail-in rebate | $ 2.00 | Allocation: | |||||||||||
| Estimate of rebate claims | 10% | Earned revenue | |||||||||||
| Unearned revenue | |||||||||||||
| b. | Prepare the journal entry to record the sale and the unearned revenue Seasons Books should record. | ||||||||||||
| Date | Debit | Credit | |||||||||||
| July | |||||||||||||
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Digital Marketing
Authors: Annmarie Hanlon
1st Edition
1526426676, 9781526426673
