Current Liabilities Accounting (Coupons & Premiums Offerred With Sales Of Products)
Accounting for premiums and coupons issued with the sale of a product to promote the product, example is where a manufacturer includes in sale of their product coupons that can be redeemed for a free toy, first have to determine coupon to be redeemed, (total coupons issued x percentage estimated to be redeemed - coupons redeemed todate = estimated coupons to be redeemed), setup a liability for unredeemed coupons and recognize the cost of the premiums and coupons in the period of the sale to match costs to revenues, detailed example by Allen Mursau
Accounting for premiums and coupons issued with the sale of a product to promote the product, example is where a manufacturer includes in sale of their product coupons that can be redeemed for a free toy, first have to determine coupon to be redeemed, (total coupons issued x percentage estimated to be redeemed – coupons redeemed todate = estimated coupons to be redeemed), setup a liability for unredeemed coupons and recognize the cost of the premiums and coupons in the period of the sale to match costs to revenues, detailed example by Allen Mursau
')){kind=link}
Thank you so much!! I love love your videos. They're always so clear. You have a wonderful voice and great examples.
Thank you !!