SPIDER MAN Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for 10 bottle crowns plus ₱5. SPIDER MAN also pays ₱2 per can opener for handling and shipping cost. SPIDER MAN estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should SPIDER MAN recognize as estimated liability for promotional items outstanding?
3.) SPIDER MAN Bottling Corporation embarked on a promotional program whereby a can opener costing ₱13 each is given away for 10 bottle crowns plus ₱5. SPIDER MAN also pays ₱2 per can opener for handling and shipping cost. SPIDER MAN estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ₱5,000,000; Can openers bought for giveaways - 15,000 units amounting to ₱195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should SPIDER MAN recognize as estimated liability for promotional items outstanding?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
