Choke Company sells products with reusable and expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Containers unreturned at the beginning of 2020P50,000 Containers delivered in 2020 500,000 Containers returned in 2020 240,000 Expired containers 30,000 How much is the deposit liability?

Liability Liability is an obligation to pay an amount to the parties from whom the firm or person…

Answered: Choke Company sells products with…

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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Choke Company sells products with reusable and expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery.

Containers unreturned at the beginning of 2020	P50,000
Containers delivered in 2020		500,000
Containers returned in 2020	240,000
Expired containers			30,000

How much is the deposit liability?

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