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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 2017 for $2.50 each, and paid for them by cash. During 2017, 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 2017, 240,000 codes were redeemed.
Question 1: Prepare all necessary journal entries for 2017 if
Question (a) Wynn follows IFRS and prefers to use the revenue approach, and
Question (b) Wynn follows ASPE and prefers to use the expense approach.
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