In package of the products, an entity included coupons that may be presented at retail stores to obtain discounts. Retailers were reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. The entity honored requests for coupon redemption by retailers up to three months after the consumer expiration date. The entity estimated that 70% of all coupons issued would ultimately be redeemed. The consumer expiration date is December 31, 2019. The total face amount of coupons issued was P6,000,000 and the total payments to retailers during 2019 amounted to P2,200,000. What amount should be reported as liability for unredeemed coupons on December 31, 2019? 2,420,000 2,000,000 0 4,440,00
In package of the products, an entity included coupons that may be presented at retail stores to obtain discounts. Retailers were reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. The entity honored requests for coupon redemption by retailers up to three months after the consumer expiration date. The entity estimated that 70% of all coupons issued would ultimately be redeemed. The consumer expiration date is December 31, 2019. The total face amount of coupons issued was P6,000,000 and the total payments to retailers during 2019 amounted to P2,200,000. What amount should be reported as liability for unredeemed coupons on December 31, 2019?
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