Prepare the journal entries that should be made in 2012 and, Ask an Expert

Accounting

Sycamore Candy Company offers a CD single as a premium for every 5 candy bar wrappers presented by customers together with $2.80. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each CD to the company is $2.55; in addition, it costs 50 cents to mail each CD. The results of the premium plan for the years 2012 and 2013 are as follows. (All purchases and sales are for cash.)

2012 2013
CDs purchased 355,000 468,600
Candy bars sold 2,986,100 2,764,400
Wrappers redeemed 1,704,000 2,130,000
2012 wrappers expected to be redeemed in 2013 411,800
2013 wrappers expected to be redeemed in 2014 497,000

(a) Prepare the journal entries that should be made in 2012 and 2013 to record the transactions related to the premium plan of the Sycamore Candy Company.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M945066

Have any Question?

Related Questions in Accounting Basics

Question - last year garrison manufacturing sold 500 000

Question - Last year, Garrison Manufacturing sold 500 000 units at $4 each. Both sales volume and sales price are expected to increase by 15 per cent in the upcoming year. Calculate the expected sales revenue for the upc ...

Assignment 1 personal assessment of strengthsto prepare for

Assignment 1: Personal Assessment of Strengths To prepare for this assignment, make sure to complete the Strengths Finder quiz located in the back of your book. This will take approximately 30 to 45 minutes. Click here f ...

Question -nbsp international chemical companys special

Question - International Chemical Company's special order also requires 1 000 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 8 000 kilograms at a carry ...

Question - during fy 2016 alpha company sold 500 units for

Question - During FY 2016, Alpha Company sold 500 units for total sales of $20,000. Manufacturing costs consisted of direct labor $2,500, direct materials $4,400, variable factory overhead $1,100, and fixed factory overh ...

Question - an individual received 70 capital interest in a

Question - An individual received 70% capital interest in a general partnership by contributing investment land purchased 10 years ago for 40000 values 60000 and a personal non business truck purchased 9 months ago for 1 ...

Question -what would you pay for an investment that pays

Question - What would you pay for an investment that pays you $5300000 after fifty years? Assume that the relevant interest rate for this type of investment is 8%. Vaughn Manufacturing makes an investment today (January ...

Question - having trouble understanding the below problem

Question - Having trouble understanding the below problem. After reviewing material, I still cannot determine answer. Consider the following example. Bonds with a term of 5 years and face value of $1,000,000 are issued o ...

Question - the calculated variable cost per unit of 18high

Question - The calculated variable cost per unit of $1.8 High Level of activity is: 1,691 units and $7,147cost. If the low level of activity was 530 units, calculate the fixed cost at the low level of activity?

Question - domingo entity entered into a contract to

Question - Domingo Entity entered into a contract to exchange a liability. However, this particular liability does not have a quoted price in Domingo's principle market. Sabado Entity holds an asset similar to the liabil ...

Question - beyer company is considering the purchase of an

Question - Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 9% return ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert