LeMay Frosted Flakes Companyoffers its customers a potterycereal bowl if they send in 4boxtops from LeMay FrostedFlakes boxes and P1.00. Thecompany estimates that 60% ofthe boxtops will be redeemed. In2010, the company sold500,000 boxes of Frosted Flakesand customers redeemed220,000 boxtops receiving55,000 bowls. If the bowls costLeMay Company P2.50 each,how much liability foroutstanding premiums shouldbe recorded at the end of 2010?70,00070,00020,00020,00050,00050,00030,00030,000

Given: company sold=500,000 customer redeemed=220,000 boxtops receiving=55,000bowls

Answered: ers Its eal bo tons

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 1BIC

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