Jo Angel Company sells its products in reusable, expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Jo Angel accounts for the container not returned within the time limit as being retired by sale at the deposit amount. Information for 2020 is as follows: Containers held by customers at December 31, 2019, from deliveries in: 2018 5,000,000 2019 6,000,000
Jo Angel Company sells its products in reusable, expensive containers. The customer is charged a deposit for each container delivered and receives a refund for each container returned within two years after the year of delivery. Jo Angel accounts for the container not returned within the time limit as being retired by sale at the deposit amount. Information for 2020 is as follows:
Containers held by customers at December 31, 2019, from deliveries in:
2018 5,000,000
2019 6,000,000
Containers delivered in 2020 9,000,000
Containers returned in 2020 from deliveries in:
2018 4,000,000
2019 4,500,000
2020 3,500,000
What amount should Jo Angel report as a liability for returnable containers at December 31, 2020?
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