During 2021, Thurs Company offered a P30 cash rebate coupon to customers who purchased one of its new line of products. The company sold 20,000 of these products during 2021. By the end of 2021, 15,200 of the rebates had been claimed and 14,200 had been paid. The historical experience with such rebates indicated that 85% of customers claim the rebates. What amount should be reported as rebate expense for 2021? a. 600,000 c. 456,000 b. 510,000 d. 426,000
During 2021, Thurs Company offered a P30 cash rebate coupon to customers who purchased one of its new line of products. The company sold 20,000 of these products during 2021. By the end of 2021, 15,200 of the rebates had been claimed and 14,200 had been paid. The historical experience with such rebates indicated that 85% of customers claim the rebates. What amount should be reported as rebate expense for 2021? a. 600,000 c. 456,000 b. 510,000 d. 426,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2021, Thurs Company offered a P30 cash rebate coupon to customers who purchased one of its new line of
products. The company sold 20,000 of these products during 2021. By the end of 2021, 15,200 of the rebates had been
claimed and 14,200 had been paid. The historical experience with such rebates indicated that 85% of customers claim the
rebates. What amount should be reported as rebate expense for 2021?
a. 600,000 c. 456,000
b. 510,000 d. 426,000
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