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Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a basketball. The entity estimated that only 60% of the box tops reaching the market would be redeemed. Sales of products 100,000 units for P 30,000,000 Basketballs purchased 5,500 units for P 4,125,000 Basketballs distributed 4,000 units . What is the premium expense for the year? ______ What is the amount of year -end estimated liability associated with this promotion? ________ respectively *   A.4,125,000 and 3,000,000 B.7,500,000 and 4,500,000 C.4,500,000 and 1,500,000 D.1,500,000 and 1,500,000 E.4,500,000 and 4,125,000

Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a basketball. The entity estimated that only 60% of the box tops reaching the market would be redeemed. Sales of products 100,000 units for P 30,000,000 Basketballs purchased 5,500 units for P 4,125,000 Basketballs distributed 4,000 units . What is the premium expense for the year? ______ What is the amount of year -end estimated liability associated with this promotion? ________ respectively *   A.4,125,000 and 3,000,000 B.7,500,000 and 4,500,000 C.4,500,000 and 1,500,000 D.1,500,000 and 1,500,000 E.4,500,000 and 4,125,000

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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Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a basketball. The entity estimated that only 60% of the box tops reaching the market would be redeemed. Sales of products 100,000 units for P 30,000,000 Basketballs purchased 5,500 units for P 4,125,000 Basketballs distributed 4,000 units . What is the premium expense for the year? ______ What is the amount of year -end estimated liability associated with this promotion? ________ respectively *
 
A.4,125,000 and 3,000,000
B.7,500,000 and 4,500,000
C.4,500,000 and 1,500,000
D.1,500,000 and 1,500,000
E.4,500,000 and 4,125,000
 
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