In 2019, Mott Co. started to include one coupon in each bag of dog food it sells. In return for ten coupons, customers receive a leash. The leashes cost Mott P2.50 each. Mott estimates that 60 percent of the coupons will be redeemed. Data for 2019 and 2020 are as follows: 2019 2020 Bags of dog food sold 500,000 600,000 Leashes purchased 18,000 20,000 Coupons redeemed 120,000 150,000 What is the premium liability at December 31, 2019?

In 2019, Mott Co. started to include one coupon in each bag of dog food it sells. In return for ten coupons, customers receive a leash. The leashes cost Mott P2.50 each. Mott estimates that 60 percent of the coupons will be redeemed. Data for 2019 and 2020 are as follows: 2019 2020 Bags of dog food sold 500,000 600,000 Leashes purchased 18,000 20,000 Coupons redeemed 120,000 150,000 What is the premium liability at December 31, 2019?

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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The premium liability at December 31, 2021 is *see attached a. P 16,875b. P 31,875c. P 33,750d. P 63,750
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