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SM Food Company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on certain products of SM.  The grocers are reimbursed when they send the coupons to SM. In SM's experience, 50% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date SM receives it.  During 2022, SM issued two separate series of coupons as follows (see attached image). The only journal entries to date recorded debits to coupon expense and credits to cash of P536,000.  The December 31, 2022 Statement of Financial Position should include a liabilit

SM Food Company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on certain products of SM.  The grocers are reimbursed when they send the coupons to SM. In SM's experience, 50% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date SM receives it.  During 2022, SM issued two separate series of coupons as follows (see attached image). The only journal entries to date recorded debits to coupon expense and credits to cash of P536,000.  The December 31, 2022 Statement of Financial Position should include a liabilit

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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SM Food Company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on certain products of SM.  The grocers are reimbursed when they send the coupons to SM. In SM's experience, 50% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date SM receives it.  During 2022, SM issued two separate series of coupons as follows (see attached image). The only journal entries to date recorded debits to coupon expense and credits to cash of P536,000. 

The December 31, 2022 Statement of Financial Position should include a liability for unredeemed coupons of ____________.

Issued On 1/1/22 Total Value 375,000 Consumer Expiration Date 6/30/22 Amount Disbursed as of 12/31/22 177,000
Transcribed Image Text:Issued On 1/1/22 Total Value 375,000 Consumer Expiration Date 6/30/22 Amount Disbursed as of 12/31/22 177,000
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