In an effort to increase sales, Mills Company inaugurated a sales promotional campaign on June 30, 2013. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost P20 and five coupons must be presente customer to receive a premium. The entity estimated that only 60% of the coupons issued would be redeemed. For the six mon ended December 31, 2013, the following information is available: Packages of cereal sold Premiums purchased Coupons redeemed 160,000 12,000 40,000 What is the estimated liability for premiums on December 31, 2013?
In an effort to increase sales, Mills Company inaugurated a sales promotional campaign on June 30, 2013. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost P20 and five coupons must be presente customer to receive a premium. The entity estimated that only 60% of the coupons issued would be redeemed. For the six mon ended December 31, 2013, the following information is available: Packages of cereal sold Premiums purchased Coupons redeemed 160,000 12,000 40,000 What is the estimated liability for premiums on December 31, 2013?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In an effort to increase sales, Mills Company inaugurated a sales promotional campaign on June 30, 2013. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost P20 and five coupons must be presente customer to receive a premium. The entity estimated that only 60% of the coupons issued would be redeemed. For the six mon ended December 31, 2013, the following information is available:
Packages of cereal sold Premiums purchased Coupons redeemed
160,000
12,000
40,000
What is the estimated liability for premiums on December 31, 2013?
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