In an effort to increase sales, Relay Company inaugurated a sales promotional campaign on June 30, 2021. The entity placed a coupon redeemable for a premium each package of cereal sold. Each premium cost P20 and five coupons must be presented by a customer to receive a premium. The entity estimated that only 60% of the coupons issued woul be redeemed. For the six months ended December 31, 2021, the following information is availabl Packages of cereal sold 160,000 Premium purchased 12,000 Coupons redeemed 40,000 What is the estimated liability for premiums on December 31, 2021? O P160,000 O P288,000 P224,000

In an effort to increase sales, Relay Company inaugurated a sales promotional campaign on June 30, 2021. The entity placed a coupon redeemable for a premium each package of cereal sold. Each premium cost P20 and five coupons must be presented by a customer to receive a premium. The entity estimated that only 60% of the coupons issued woul be redeemed. For the six months ended December 31, 2021, the following information is availabl Packages of cereal sold 160,000 Premium purchased 12,000 Coupons redeemed 40,000 What is the estimated liability for premiums on December 31, 2021? O P160,000 O P288,000 P224,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9EB: Using the following select financial statement information from Mover Supply Depot, compute the...

See similar textbooks

Similar questions

In an effort to increase sales, ABC Company inaugurated a sales promotional campaign on June 30, 2021. ABC Company placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost ABC Company P20 and five coupons must be presented by a customer to receive a premium. ABC Company estimated that only 60% of the coupons issued will be redeemed. For the six months ended December 31, 2021 the following information is available. Package of cereal sold Premiums purchased Coupons redeemed 160,000 12,000 40,000 What is the estimated liability for premiums on December 31, 2021?
On July 1, 2021, Sansrival Company started a sales promotional campaign. In each box of cereal sold, Sansrival inserted a coupon redeemable for a premium. To receive a premium, each customer must submit five coupons. Sansrival’s cost for each premium is P6. Sansrival estimated that 60% of the coupons issued would be redeemable. For the six months ended December 31, 2021, the following information is available: Boxes of cereal sold 800,000 Coupons Redeemed 200,000 How much should be the estimated liability for premium claims outstanding at December 31, 2021?
In an effort to increase sales, Mills Company inaugurated a sales promotional campaign on June 30, 2013. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost P20 and five coupons must be presente customer to receive a premium. The entity estimated that only 60% of the coupons issued would be redeemed. For the six mon ended December 31, 2013, the following information is available: Packages of cereal sold Premiums purchased Coupons redeemed 160,000 12,000 40,000 What is the estimated liability for premiums on December 31, 2013?
Ben and Co. inaugurated a sales promotion campaign on May 31, 2019, whereby Ben placed a coupon in each package of chocolate sold, the coupons being redeemable for a premium. Each premium costs Ben P 50 and a customer to receive a coupon must present five coupons. Ben estimated that only 60 % of the coupon issued would be redeemed. For the seven months ended Dec. 3, 2019, the following information is available: Packages of chocolates sold 400,000 Premium purchased 30,000 Coupons redeemed 100,000 How much is the estimated liability for premium claims outstanding at Dec. 31, 2019? * A.P 180,000 B.P 140,000 C.P 240,000 D.P 100,000
In packages of its products, Kristine Company includes coupons that may be presented at retail stores to obtain discounts on other Kristine Company products. Retailers are reimbursed for the face amount of coupons plus 20% of that amount for handling costs. Kristine honors requests for coupon redemption by retailers up to three months after the consumer expiration date. Kristine estimates that 80% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Kristine during 2020 is as follows: Consumer expiration date December 31, 2020 Total face amount of coupons issued 5,000,000 Total payments to retailers as of December 31, 2020 3,600,000 What amount should Kristine report as a liability for unredeemed coupons at December 31, 2020? Group of answer choices A. 400,000 B. 2,400,000 C. 1,200,000 D. 1,400,000
In packages of its products, CUTE COMPANY includes coupons that may be presented at retail stores to obtain discounts on other CUTE COMPANY products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. CUTE COMPANY honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. CUTE COMPANY estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by CUTE COMPANY during 2021 is as follows: Consumer expiration date - December 31, 2021; Total payments to retailers as of December 31, 2021 - ₱165,000; Liability for unredeemed coupons as of December 31, 2021 - ₱99,000. What is the total face amount of coupons issued by CUTE COMPANY Inc. in 2021? A. ₱ 264,000 B. ₱ 400,000 C. ₱ 600,000 D. ₱ 440,000
In packages of its products, JENNIE Inc. includes coupons that may be presented at retail stores to obtain discounts on other JENNIE products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. JENNIE honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. JENNIE estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by JENNIE during 2021 is as follows: Consumer expiration date - December 31, 2021; Total payments to retailers as of December 31, 2021 - ₱165,000; Liability for unredeemed coupons as of December 31, 2021 - ₱99,000. What is the total face amount of coupons issued by JENNIE Inc. in 2021? ₱ 440,000 ₱ 400,000 ₱ 264,000 ₱ 600,000
In packages of its products, Do not cheat Company includes coupons that may be presented at retail stores to obtain discounts on various products. Retailers are reimbursed for the face amount of coupons redeemed plus 15% of that amount for handling cost. The Company honors requests for coupon redemption by retailers up to 5 months after the consumer expiration date. The Company estimates that 50% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by the Company during 2022 is as follows: Liability for unredeemed coupons as of 12/31/2022 P237,500 Total payments to retailers as of 12/31/2022 P165,000 Q1A – What is the amount of estimated premium liability at the set up date? Q1B – What is the amount of handling charges? Q1C – What is the face amount of coupons issed by Do not cheat Company?
On June 1, Compassion Company sold merchandise with a list price of P 1,000,000 to a customer. The entity allowed trade discounts of 20% and 10%. Credit terms were 5 / 10; n/30 and the sale was made FOB shipping point. The entity prepaid P50,000 of delivery cost for the customer as an accommodation. The customer paid in full on June 11. What amount is received from the customer as full remittance?
In packages of its products, Rolex Company includes coupons that may be presented at retail stores to obtain discounts on various products. Retailers are reimbursed for the face amount of coupons redeemed plus 15% of that amount for handling cost. The Company honors requests for coupon redemption by retailers up to 5 months after the consumer expiration date. The Company estimates that 50% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by the Company during 2022 is as follows: Liability for unredeemed coupons as of 12/31/2022 P237,500 Total payments to retailers as of 12/31/2022 P165,000 Q4 – What is the amount of estimated premium liability at the setup date? Q5 – What is the amount of handling charges? Q6 – What is the face amount of coupons issued by Rolex Company?
Griffin Company mails coupons to consumers which may be presented at a stated expiration date at retail food stores to obtain discounts on certain Griffin products. Retailers are reimbursed for the face value of coupons redeemed, plus 10% of coupon face value as compensation for handling costs.The entity honours requests for coupon redemption by retailers received up to three months after the consumer expiration date. Based on experience, 60% of the coupons issued ultimately are redeemed.The entity provided the following information with respect to two separate series of coupons issued during 2020: Series A Series B Consumer expiration date September 30, 2020 December 31, 2020 Total face value of coupons issued 1,500,000 3,000,000 Total payments to retailers on December 31, 2020 907,500 607,500 What amount should be reported as liability for unredeemed coupons on December 31, 2020?
Please show the solution in good accounting form 7. In packages of its products, JENNIE Inc. includes coupons that may be presented at retail stores to obtain discounts on other JENNIE products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. JENNIE honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. JENNIE estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by JENNIE during 2021 is as follows: Consumer expiration date - December 31, 2021; Total payments to retailers as of December 31, 2021 - ₱165,000; Liability for unredeemed coupons as of December 31, 2021 - ₱99,000. What is the total face amount of coupons issued by JENNIE Inc. in 2021? a. ₱ 600,000 b. ₱ 400,000 c. ₱ 440,000 d. ₱ 264,000