Question

Question 8 

During 2020, Marshall Mathers Corp. offered customers a $10 cash rebate on purchases over $100. At the time of any purchase over $100, customers can choose to provide their address to Mathers. Those who do will receive a $10 prepaid debit card in the mail within 60 days. By the end of 2020, Mathers had sales totaling $160,000, and 1,200 customers applied for rebates totaling $12,000. By the end of 2020, $9,000 in debit cards had been mailed, and the remaining $3,000 in debit cards will be mailed in January 2021. How much should Mathers recognize as revenue in its 2020 income statement? (just enter the number, without any commas or a dollar sign) 

Question 9

In January 2020, Jacques Webster, Inc., began selling guitars with a 60-day return policy for $100 each. Webster sold 300 guitars in the first quarter of 2020 (Q1). At the end of Q1, 20 of the 300 guitars had already been returned and Webster expected that 10 more would be returned during Q2 (i.e., 30 returns in total). How much net revenue (i.e., net of returns) should Webster report in its income statement in Q1? (just enter the number, without any commas or a dollar sign)

Answer 1

Answer 8:- 148000 because of the prudence concept

Answer9:- 27000 because of the prudence concept . You recognise your expenses in advance