Please show solution for both nos. 1 and 2, thank you! Problem 2-22 (IFRS)(0) IskorJamaica Company, a retailer of electrical goods, participatesin a customer loyalty program operated by an airline.The entity grants program members one air travel point forevery FP1,000 spent on electrical goods.871100Program members can redeem the points for travel with theairline subject to availability. The entity pays the airline P60for each point.O MANUADuring the current year, the entity sold electrical goods forconsideration totaling P4,500,000 based on stand-aloneselling price and granted 5,000 points with stand-alone sellingprice of P100 per point.d1. What amount should be recognized as product salesrevenue?aberning 008a. 4,500,000b. 4,050,000095c.5,000,000d. 2,500,0002. What is the net revenue from points?a. 450,000b. 150,000c. 200,000d. 300,000xe vi bearer (10throq 000,0 46inoxALSOSdiscos

Revenue should be allocated to sale of goods & sale of points based on stand-alone price, Given,…

Problem 2-22 (IFRS) (20) Iskor Jamaica Company, a retailer of electrical goods, participates in a customer loyalty program operated by an airline. TOBOACIO The entity grants program members one air travel point for every P1,000 spent on electrical goods. 1 102 100 Program members can redeem the points for travel with the airline subject to availability. The entity pays the airline P60 for each point. During the current year, the entity sold electrical goods for consideration totaling P4,500,000 based on stand-alone selling price and granted 5,000 points with stand-alone selling price of P100 per point. 1. What amount should be recognized as product sales revenue? rababe gining 008 0908 a. 4,500,000 b. 4,050,000 xe vi boarrei 1000 throq 000 0 10 200 4 c. 5,000,000 d. 2,500,000 2. What is the net revenue from points? a. 450,000 b. 150,000 c. 200,000 d. 300,000 pod bor audiocons

Problem 2-22 (IFRS) (20) Iskor Jamaica Company, a retailer of electrical goods, participates in a customer loyalty program operated by an airline. TOBOACIO The entity grants program members one air travel point for every P1,000 spent on electrical goods. 1 102 100 Program members can redeem the points for travel with the airline subject to availability. The entity pays the airline P60 for each point. During the current year, the entity sold electrical goods for consideration totaling P4,500,000 based on stand-alone selling price and granted 5,000 points with stand-alone selling price of P100 per point. 1. What amount should be recognized as product sales revenue? rababe gining 008 0908 a. 4,500,000 b. 4,050,000 xe vi boarrei 1000 throq 000 0 10 200 4 c. 5,000,000 d. 2,500,000 2. What is the net revenue from points? a. 450,000 b. 150,000 c. 200,000 d. 300,000 pod bor audiocons

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...

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5. MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 50,000 award credits. The fair value of the award credits is reliably measured at P2,000,000. In 2019, the entity sold goods to customers for a total consideration of P9,000,000 including the fair value of the award credits. The total award credits expected to be redeemed are 80% in 2019 and 85% in 2020. The award credits actually redeemed are 15,000 in 2019 and 7,950 in 2020. What is the revenue earned from points in 202O? * a. P600,000 b. P750,000 c. P330,000 d. P318,000
MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 50,000 award credits. The fair value of the award credits is reliably measured at P2,000,000. In 2019, the entity sold goods to customers for a total consideration of P9,000,000 including the fair value of the award credits. The total award credits expected to be redeemed are 80% in 2019 and 85% in 2020. The award credits actually redeemed are 15,000 in 2019 and 7,950 in 2020. What is the revenue earned from points in 2020?
Problem 2-5 (IFRS) Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for the goods of the entity. The points have no expiry date. During 2020, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The stand-alone selling price of the award credits granted is reliably measured at P1,000,000. In 2020, the entity sold goods to customers for a total consideration of P7,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2020 15,000 80% 2021 7,950 85%…
Problem 2-20 (IFRS) William Company operates a customer loyalty program.The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2020,the entity issued 100,000 award credits and expects that 80% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is reliably measured at P2,000,000. In 2020, the entity sold goods to customers for a total consideration of P8,000,000 based on stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2020 30,000 80% 2021 15,000 1. What is the revenue from points for 2020? a. 1,600,000 b 1,500,000 C. 600,000 d 480,000 2. What is the revenue from points for 2021? a.240,000 B.200,000 C. 120,000 d 0
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Southeast Airlines Inc. awards members of its Flightlineprogram a second ticket at half price, valid for 2 yearsanywhere on its flight system, when a full-price ticket ispurchased. How would you account for the full-fare andhalf-fare tickets?
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