packages of its products, Yolo Company includes coupons that may be presented at retail stores to obtain discounts on other Yolo Company products. Retailers are reimbursed for the face amount of coupons plus 20% of that amount for handling costs. Yolo honors requests for coupon redemption by retailers up to three months after the consumer expiration date. Yolo estimates that 80% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Yolo during 2019 is as
In packages of its products, Yolo Company includes coupons that may be presented at retail stores to obtain discounts on other
Yolo Company products. Retailers are reimbursed for the face amount of coupons plus 20% of that amount for handling costs.
Yolo honors requests for coupon redemption by retailers up to three months after the consumer expiration date. Yolo estimates
that 80% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Yolo during 2019 is as
follows:
Consumer expiration date December 31, 2019
Total face amount of coupons issued P7,500,000
Total payments to retailers as of December 31, 2019 P5,400,000
What amount should Yolo report as a liability for unredeemed coupons at December 31, 2019?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
