Bavarian Bar and Grill opened for business in November 2021. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $5,800, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 70% of gift cards are redeemed within one year. Gift cards totaling $1,600 were presented for redemption during 2021 for meals having a total price of $2,000. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Sales taxes will be remitted in January.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Bavarian Bar and Grill opened for business in November 2021. During its first two months of operation, the restaurant sold gift cards in ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
When computing the cost per equivalent unit, the weighted-average method of process costing considers: A) costs incurred during the current period only. B) costs incurred during the current period plus cost of ending work in process inventory.
Answers (1)
On June 30 of the current calendar year, Apricot Co. paid $7,500 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment.
Answers (1)
A large oil company is studying the number of gallons of gasoline purchased per customer at self-service pumps. The mean number of gallons is 10.0, with a standard deviation of 3.0 gallons. The median is 10.75 gallons.
Answers (1)
What is a non-sufficient fund (NSF) fee and when must you pay it?
Answers (2)
Your boss asks you to compute the company's cash conversion cycle. looking at the financial statements, you see that the average inventory for the year was $126,300, accounts receivable were $97,900, and accounts payable were at $115,100.
Answers (1)
New Questions in Business
Corporations have more ways to raise to pay for productive resources than small firms or not-for-profit organizations.
Answers (1)
Thom owes $8,600 on his credit card. The credit card carries an APR of 19.1 percent compounded monthly.
Answers (1)
Dana was a stay-at-home mother until her recent divorce. she went back into the paid workforce to provide for her child. she loves her job but is concerned that she is not at home to spend more time with her child. should dana be worried about this?
Answers (1)
Explain how each of the following relates to the financial crisis of 2007-2008: Declines in real-estate values. Subprime mortgage loans. Mortgage-backed securities.
Answers (1)
Which assumption or principle requires that all information significant enough to affect decisions of reasonably informed users should be reported in the financial statements? Going concern. Historical cost. Full disclosure. Matching.
Answers (1)