E-Z Electronics Is Running a Video Game Promotion

question 83

Multiple Choice

E-Z Electronics is running a video game promotion.For every 10 video games purchased,the customer receives a coupon upon checkout to receive a free game.The coupons expire in one year.E-Z estimates that about half of its video game customers will qualify to receive a coupon.In the past,the store has recognized a gross profit margin of 40% of the selling price on video games.How would the store determine the dollar amount of the adjusting entry to record premium expense and the related contingent liability?

• A)5% of total video game sales
• B)3% of total video game sales
• C)2)5% of total video game sales
• D)2% of total video game sales

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Definitions:

Power Relations

The dynamics of power between individuals, groups, or institutions within a society, determining how power is distributed, exercised, and resisted.

Dominant Society's

Reflective of the culture, values, and practices of the society's ruling class or majority group.

Institutional Beliefs

Deeply ingrained convictions or ideologies held and propagated by an institution, which shape its policies, culture, and practices.

Post-Structural Theory

An intellectual movement in criticism and philosophy that suggests structures and systems of thought or language are inherently unstable and subject to deconstruction.