Kikiam Company sells its products in reusable expensive containers. The customer is charged a deposit for each container delivered and receives a refund for the reach container returned within two years after the year of delivery. Kikiam Company accounts for any containers not returned within the time limit as being retired by sale at the deposit amount. Information relating to customer deposits follows: Containers held by customers on December 31, 2020, from deliveries in • 2019- P10,000 • 2020- P90,000 Containers delivered in 2021- P100,000 Containers returned in 2021 from deliveries in • 2019- P8,000 2020- P40,000 • 2021- P44,000 What amount should Kikiam report as a liability for deposits on returnable containers on
Kikiam Company sells its products in reusable expensive containers. The customer is charged a deposit for each container delivered and receives a refund for the reach container returned within two years after the year of delivery. Kikiam Company accounts for any containers not returned within the time limit as being retired by sale at the deposit amount. Information relating to customer deposits follows: Containers held by customers on December 31, 2020, from deliveries in • 2019- P10,000 • 2020- P90,000 Containers delivered in 2021- P100,000 Containers returned in 2021 from deliveries in • 2019- P8,000 2020- P40,000 • 2021- P44,000 What amount should Kikiam report as a liability for deposits on returnable containers on
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kikiam Company sells its products in reusable expensive containers. The customer is charged a
deposit for each container delivered and receives a refund for the reach container returned within
two years after the year of delivery. Kikiam Company accounts for any containers not returned
within the time limit as being retired by sale at the deposit amount. Information relating to
customer deposits follows:
Containers held by customers on December 31, 2020, from deliveries in
• 2019- P10,000
• 2020- P90,000
Containers delivered in 2021- P100,000
Containers returned in 2021 from deliveries in
• 2019- P8,000
• 2020- P40,000
• 2021- P44,000
What amount should Kikiam report as a liability for deposits on returnable containers on
December 31, 2021? *
O P118,000
O P108,000
O P106,000
O P100,000
O P115,000
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