M includes one coupon in each bag of dog food it sells. The coupons do not have an expiration date. In exchange for five coupons, M sends customers a leash. The leashes cost M $2 each. M estimates customers will redeem 20% of the coupons. Data for 2018 and 2019 follows: 2018 2019 Bags of dog food sold 650,000 740,000 Leashes purchased 30,000 27,000 Coupons redeemed 100,000 120,000 What is M’s estimated coupon/leash premium expense for 2018? What is M’s estimated coupon/leash premium liability at December 31, 2018? What is M’s estimated coupon/leash premium expense for 2019? What is M’s estimated coupon/leash premium liability at December 31, 2019?
M includes one coupon in each bag of dog food it sells. The coupons do not have an expiration date. In exchange for five coupons, M sends customers a leash. The leashes cost M $2 each. M estimates customers will redeem 20% of the coupons. Data for 2018 and 2019 follows:
2018 2019
Bags of dog food sold 650,000 740,000
Leashes purchased 30,000 27,000
Coupons redeemed 100,000 120,000
- What is M’s estimated coupon/leash premium expense for 2018?
- What is M’s estimated coupon/leash premium liability at December 31, 2018?
- What is M’s estimated coupon/leash premium expense for 2019?
- What is M’s estimated coupon/leash premium liability at December 31, 2019?
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)