Wynn Corp. offers a set of building blocks to customers who send in three codes from Wynn cereal, along with $1. Wynn purchased 100,000 building block sets in 2023 for $2.50 each and paid for them by cash. During 2023, Wynn sold one million boxes of cereal for $4 per box. Wynn estimates that 10% of the sales amount received from customers relates to the building block sets to be awarded. Wynn expects 30% of the codes to be sent in, and in 2023,240,000 codes were redeemed. Prepare all necessary journal entries for 2023 if (a) Wynn follows IFRS and prefers to use the revenue approach.
Wynn Corp. offers a set of building blocks to customers who send in three codes from Wynn cereal, along with $1. Wynn purchased 100,000 building block sets in 2023 for $2.50 each and paid for them by cash. During 2023, Wynn sold one million boxes of cereal for $4 per box. Wynn estimates that 10% of the sales amount received from customers relates to the building block sets to be awarded. Wynn expects 30% of the codes to be sent in, and in 2023,240,000 codes were redeemed. Prepare all necessary journal entries for 2023 if (a) Wynn follows IFRS and prefers to use the revenue approach.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Wynn Corp. offers a set of building blocks to customers who send in three codes from Wynn
cereal, along with $1. Wynn purchased 100,000 building block sets in 2023 for $2.50 each
and paid for them by cash. During 2023, Wynn sold one million boxes of cereal for $4 per
box. Wynn estimates that 10% of the sales amount received from customers relates to the
building block sets to be awarded. Wynn expects 30% of the codes to be sent in, and in
2023,240,000 codes were redeemed. Prepare all necessary journal entries for 2023 if (a)
Wynn follows IFRS and prefers to use the revenue approach.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9426e4ac-52e1-4ffb-98c6-d2aeaa2d7e36%2F92d5340e-7ea9-4638-9cdc-48ba51f032da%2Fitx1ghj_processed.png&w=3840&q=75)
Transcribed Image Text:Wynn Corp. offers a set of building blocks to customers who send in three codes from Wynn
cereal, along with $1. Wynn purchased 100,000 building block sets in 2023 for $2.50 each
and paid for them by cash. During 2023, Wynn sold one million boxes of cereal for $4 per
box. Wynn estimates that 10% of the sales amount received from customers relates to the
building block sets to be awarded. Wynn expects 30% of the codes to be sent in, and in
2023,240,000 codes were redeemed. Prepare all necessary journal entries for 2023 if (a)
Wynn follows IFRS and prefers to use the revenue approach.
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