ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as expense for the promotional program? *   A ₱ 150,000 B ₱ 400,000 C ₱ 100,000 D ₱ 300,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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9. ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for every 10 bottle crowns returned plus ₱5. ALMOND also pays ₱2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as expense for the promotional program? *
 
A ₱ 150,000
B ₱ 400,000
C ₱ 100,000
D ₱ 300,000
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