Assume That Wallywill, Inc

question 7

Essay

Assume that Wallywill, Inc.offered its customers, which are primarily retail stores who sell its products, an advertising allowance equal to 8% of the amount of purchases from Wallywill during December, if the retail store would spend the money for advertising in January.Wallywill Inc.'s sales in December totaled $15,000,000, and it was expected that 70% of those sales were made to retailers who would take advantage of the advertising allowance offer.
Write the journal entry or use the horizontal model to show the effect of the accrual that should be made as of December 31 with respect to the advertising allowance offer.

---

Definitions:

Open Systems

Organizations or entities that interact with their environment, exchanging resources, influences, and outputs with their external context.

Internal Component

This refers to the inner beliefs, values, or attitudes that influence an individual's behavior or perception of the self and others.

Customer

An individual or entity that purchases goods or services from another individual or entity.

Physical Health

The overall condition of a person's body, including the absence of disease, fitness level, and physical ability to perform tasks.