Fluffy Custard Company offers itscustomers a silicone mixing spoon inexchange for 20 cents and 15boxtops. The mixing spoon costs FluffyCustard Company 75 cents, and thecompany estimates thatcustomers will redeem 60 percent of theboxtops. The premium offer began January2020, and FluffyCustard Company purchase 15,000 siliconemixing spoons at 75 cents. Fluffy sold200,000 packagesof custard and no coupons were redeemed.In its December 2020 Balance Sheet whatamount shouldmill report as estimated liability forcoupons?А. 1600В. 8000C.4400D. 6000

In its December 2020 Balance Sheet 4400 amount should mill report as estimated liability for coupon.

Answered: In its December 2020 Balance Sheet what…

Business

Accounting

In its December 2020 Balance Sheet what amount should mill report as estimated liability for coupons?

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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Question

Fluffy Custard Company offers its
customers a silicone mixing spoon in
exchange for 20 cents and 15
boxtops. The mixing spoon costs Fluffy
Custard Company 75 cents, and the
company estimates that
customers will redeem 60 percent of the
boxtops. The premium offer began January
2020, and Fluffy
Custard Company purchase 15,000 silicone
mixing spoons at 75 cents. Fluffy sold
200,000 packages
of custard and no coupons were redeemed.
In its December 2020 Balance Sheet what
amount should
mill report as estimated liability for
coupons?
А. 1600
В. 8000
C.4400
D. 6000

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