ers Its eal bo tons
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:LeMay Frosted Flakes Company
offers its customers a pottery
cereal bowl if they send in 4
boxtops from LeMay Frosted
Flakes boxes and P1.00. The
company estimates that 60% of
the boxtops will be redeemed. In
2010, the company sold
500,000 boxes of Frosted Flakes
and customers redeemed
220,000 boxtops receiving
55,000 bowls. If the bowls cost
LeMay Company P2.50 each,
how much liability for
outstanding premiums should
be recorded at the end of 2010?
70,000
70,000
20,000
20,000
50,000
50,000
30,000
30,000
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