How to account for Rebates, Coupons and Premiums PDF

Title	How to account for Rebates, Coupons and Premiums
Course	Intermediate Accounting II
Institution	Idaho State University
Pages	1
File Size	38.4 KB
File Type	PDF
Total Downloads	56
Total Views	139

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Summary

How to account for Rebates, Coupons and Premiums...

Description

How to account for Rebates, Coupons and Premiums: Rebates: Cash

xxx Sales revenue

xxx

Sales Rebate-Contra Account xxx Liability-Rebate

xxx

Coupons: Liabilities from coupons should be estimated and recognized in the year when sales are made. Example Journal Entry Coupon Expense

xxx

Estimated Coupon Claims outstanding

xxx

When coupons are claimed: Estimated Coupon Claims outstanding

xxx

Cash or Inventory

xxx

* If the actual redemption of coupons is greater than the estimated liabilities, the underestimated amount would be recognized as the expense of the current year. Premiums: Allocate a portion of the price to the premium since it is a separate performance obligation. Cash

xxx

Sales Revenue

xxx

Deferred Revenue-Premium

xxx

When Premium is cash in: Deferred Revenue-Premium

xxx

Revenue Premium Expense: Inventory

xxx xxx xxx...