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XYZ Inc sells enhanced warranties for its products as a separate service. During the year, the company sold 18,198 warranty contracts at $112 each. The
XYZ Inc sells enhanced warranties for its products as a separate service. During the year, the company sold 18,198 warranty contracts at $112 each. The company spent $163,810 in servicing the warranties during the year, and it estimates that an additional $819,110 will be spent in the future to service the warranties. The company recognizes warranty revenue based on the proportion of costs incurred out of the total estimated costs. How much total warranty revenue will be recorded during the year by the company under the revenue approach for service-type warranties? $339,675 $348,167 $356,659 $365,151 $373,643 XYZ Inc offers a gift set to customers who send in $1.13 plus three coupon codes obtained from the purchase of the company's standard products. That is, a customer purchases three standard products which come with a coupon each, sends everything in along with the cheque for the amount above, and receives the gift set in the mail a few weeks later. During the year, the company acquired an adequate number of gift sets for $2.67 each using cash to meet the promotion's demand. During the year, the company sold 1,078,710 of its standard products for $4.21 each. The company estimated that 10% of the sales amount received from customers would relate to the gift set to be awarded. The company would expect 34.79% of the coupons to be sent in eventually, and, during the year, 258,890 coupons were redeemed. If the company followed IFRS using the revenue approach, how much promotion expense would be recorded for the year for the redeemed coupons? $129,574 $132,897 $136,219 $139,542 $142,864
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