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16. ABC Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, plus P4, customers receive a leash. The leashes cost ABC P5.00 each and the cost for distribution it is P2 each. ABC estimates that 40 percent of the coupons will be redeemed. Data for 2022 and 2023, respectively, are as follows: Bags of dog food sold 500,000 600,000 Leashes purchased 18,000 22,000 Coupons redeemed 120,000 150,000 To record the redemption, which of the following can’t be found in the entry?   a. Dr. Premium expense of 75,000 b. Dr. Premium Expense of 45,000 c. Dr. Cash of 30,000 net d. Cr. Leash Inventory of 75,000

16. ABC Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, plus P4, customers receive a leash. The leashes cost ABC P5.00 each and the cost for distribution it is P2 each. ABC estimates that 40 percent of the coupons will be redeemed. Data for 2022 and 2023, respectively, are as follows: Bags of dog food sold 500,000 600,000 Leashes purchased 18,000 22,000 Coupons redeemed 120,000 150,000 To record the redemption, which of the following can’t be found in the entry?   a. Dr. Premium expense of 75,000 b. Dr. Premium Expense of 45,000 c. Dr. Cash of 30,000 net d. Cr. Leash Inventory of 75,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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16. ABC Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, plus P4, customers receive a leash. The leashes cost ABC P5.00 each and the cost for distribution it is P2 each. ABC estimates that 40 percent of the coupons will be redeemed. Data for 2022 and 2023, respectively, are as follows:

Bags of dog food sold 500,000 600,000

Leashes purchased 18,000 22,000

Coupons redeemed 120,000 150,000

To record the redemption, which of the following can’t be found in the entry?

 

a. Dr. Premium expense of 75,000

b. Dr. Premium Expense of 45,000

c. Dr. Cash of 30,000 net

d. Cr. Leash Inventory of 75,000

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