Advisory Company inciudes one coupon in each of laundry soap sells. A towel is offered as a premium customers who send in 1o coupons and a remittance of P5. Data for the premium offer are: 2007 2008 Boxes of soap sold 1,000,000 1,500,000 Number of towels purchased at P50 per towel 40,000 65,000 Number of towels distributed as premium 35,000 58,000 Number of towels to be distributed as premium next period 3,000 5,000 In its 2008 income statement, Advisory Company should report premium expense at O 3,000,000 O 2,835,000 O 2,700,000

Advisory Company inciudes one coupon in each of laundry soap sells. A towel is offered as a premium customers who send in 1o coupons and a remittance of P5. Data for the premium offer are: 2007 2008 Boxes of soap sold 1,000,000 1,500,000 Number of towels purchased at P50 per towel 40,000 65,000 Number of towels distributed as premium 35,000 58,000 Number of towels to be distributed as premium next period 3,000 5,000 In its 2008 income statement, Advisory Company should report premium expense at O 3,000,000 O 2,835,000 O 2,700,000

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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