LAXUS DREYAR Co. inaugurated a sales promotional campaign on September 1, 2020 in its desire to improve sales. LAXUS DREYAR Co. placed a coupon redeemable for a premium in each box sold. Each premium costs LAXUS P20 and five coupons must be presented by a customer to receive a premium. LAXUS estimated that only 70% of the coupon issued would be redeemed. For the four months ended December 31, 2020 the following information is available: Boxes sold |400, 000 Premiums purchased Coupons redeemed 30, 000 |100, 000 How much is the estimated liability for the premium claims outstanding at December 31, 2020?

LAXUS DREYAR Co. inaugurated a sales promotional campaign on September 1, 2020 in its desire to improve sales. LAXUS DREYAR Co. placed a coupon redeemable for a premium in each box sold. Each premium costs LAXUS P20 and five coupons must be presented by a customer to receive a premium. LAXUS estimated that only 70% of the coupon issued would be redeemed. For the four months ended December 31, 2020 the following information is available: Boxes sold |400, 000 Premiums purchased Coupons redeemed 30, 000 |100, 000 How much is the estimated liability for the premium claims outstanding at December 31, 2020?

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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