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*see attached  Determine the (a) premium expense and (b) estimated liability as of the reporting period: a. (a) P 24,000 and (b) P 14,000 b. (a) P 24,000 and (b) P 10,000 c. (a) P 48,000 and (b) P 14,000 d. (a) P 48,000 and (b) P 20,000

*see attached  Determine the (a) premium expense and (b) estimated liability as of the reporting period: a. (a) P 24,000 and (b) P 14,000 b. (a) P 24,000 and (b) P 10,000 c. (a) P 48,000 and (b) P 14,000 d. (a) P 48,000 and (b) P 20,000

FINANCIAL ACCOUNTING
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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*see attached 

Determine the (a) premium expense and (b) estimated liability as of the reporting period:
a. (a) P 24,000 and (b) P 14,000
b. (a) P 24,000 and (b) P 10,000
c. (a) P 48,000 and (b) P 14,000
d. (a) P 48,000 and (b) P 20,000

In an effort to increase sales, Blue Razor Blade Company inaugurated a sales promotion campaign on June 30, 20x2, whereby Blue placed a coupon in each package of razor blades sold, the coupons being redeemable for a premium. Each premium costs Blue P 0.50 and five coupons must be presented by a customer to receive a premium. Blue estimated that only 60% of the coupons issued will be redeemed. For the six months ended Dec. 31, 20x2, the following information is available: Packages of razor blades sold 400,000 30,000 Premiums purchased Coupons redeemed 100,000
Transcribed Image Text:In an effort to increase sales, Blue Razor Blade Company inaugurated a sales promotion campaign on June 30, 20x2, whereby Blue placed a coupon in each package of razor blades sold, the coupons being redeemable for a premium. Each premium costs Blue P 0.50 and five coupons must be presented by a customer to receive a premium. Blue estimated that only 60% of the coupons issued will be redeemed. For the six months ended Dec. 31, 20x2, the following information is available: Packages of razor blades sold 400,000 30,000 Premiums purchased Coupons redeemed 100,000
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