opic: Premium Liability Problem 2-1 Miracle Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below. 2020 2021 Sales 3,600,000 4,200,000 Purchase of premium, P50 per plate 390,000 580,000 Number of plates distributed as premiums 5,000 9,000 Estimated number of plates to be distributed in subsequent period 2,000 3,000 Distribution cost P20 per plate Solve for the following amounts The Premium Premium Expense Premium Liability
opic: Premium Liability Problem 2-1 Miracle Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below. 2020 2021 Sales 3,600,000 4,200,000 Purchase of premium, P50 per plate 390,000 580,000 Number of plates distributed as premiums 5,000 9,000 Estimated number of plates to be distributed in subsequent period 2,000 3,000 Distribution cost P20 per plate Solve for the following amounts The Premium Premium Expense Premium Liability
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic: Premium Liability
Problem 2-1
Miracle Company manufactures a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10.
Data with respect to the premium offer are summarized below.
| 2020 | 2021 | |
| Sales | 3,600,000 | 4,200,000 |
| Purchase of premium, P50 per plate | 390,000 | 580,000 |
| Number of plates distributed as premiums | 5,000 | 9,000 |
| Estimated number of plates to be distributed in subsequent period | 2,000 | 3,000 |
| Distribution cost P20 per plate |
Solve for the following amounts
- The Premium
- Premium Expense
- Premium Liability
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