A company offers a cash rebate of P1 on each P4 package of light bulbs sold since 2015. Historically, 10% of customers mail in the rebate form. During 2020, 5,000,000 packages of light bulbs are sold, and 150,000 P1 rebates are mailed to customers. What is the rebate liability to be shown on the 2020 financial statements dated December 31?

A company offers a cash rebate of P1 on each P4 package of light bulbs sold since 2015. Historically, 10% of customers mail in the rebate form. During 2020, 5,000,000 packages of light bulbs are sold, and 150,000 P1 rebates are mailed to customers. What is the rebate liability to be shown on the 2020 financial statements dated December 31?

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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71. Sbject :- Accounting
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