Khoko Company is offering a promotion whereby a customer who purchases three boxes of chocolates...
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Accounting
Khoko Company is offering a promotion whereby a customer who purchases three boxes of chocolates at P200 per box in a single transaction receives a coupon for one free box of chocolates if the customer fills out a request form and mails it before a set expiration date. It is expected that 75% of the coupons will be redeemed. During 2021, the entity sold 60,000 boxes of chocolates at P200 per box or P12,000,000. During 2022, the entity delivered 12,000 additional free boxes of chocolates to the customers. A. What amount should be reported as stand-alone selling price of the free product coupons?
1,500,000
4,000,000
1,000,000
3,000,000
B. What amount should be reported as sales revenue from the delivery of free products in 2022?
1,800,000
1,440,000
1,200,000
720,000
C. What amount should be reported as sales revenue in 2021?
12,000,000
6,000,000
4,800,000
9,600,000
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