6. SPIDER MAN Bottling Corporation embarked on a promotional program whereby a can opener costing P13 each is given away for 10 bottle crowns plus P5. SPIDER MAN also pays P2 per can opener for handling and shipping cost. SPIDER MAN estimates that only 40% of the botle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to P5,000,000; Can openers bought for giveaways - 15,000 units amounting to P195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should SPIDER MAN recognize as estimated liability for promotional items outstanding? *

6. SPIDER MAN Bottling Corporation embarked on a promotional program whereby a can opener costing P13 each is given away for 10 bottle crowns plus P5. SPIDER MAN also pays P2 per can opener for handling and shipping cost. SPIDER MAN estimates that only 40% of the botle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to P5,000,000; Can openers bought for giveaways - 15,000 units amounting to P195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should SPIDER MAN recognize as estimated liability for promotional items outstanding? *

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Description: 6. SPIDER MAN Bottling Corporation embarked on a promotional programwhereby a can opener costing P13 each is given away for 10 bottle crowns plusP5. SPIDER MAN also pays P2 per can opener for handling and shipping cost.SPIDER MAN estimates that only

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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