Homework Help is Here – Start Your Trial Now!
Business
Accounting
What amount should be reported as liability for coupons on December 31, 2021?

What amount should be reported as liability for coupons on December 31, 2021?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

This lesson is under non-financial liabilities.

6. DOCK OCK Corp. frequently distributes coupons to promote new products. On October 1, 2021, the entity mailed 100,000 coupons for 45 off each box of cereal purchased and expected 12,000 of these coupons to be redeemed. It takes 30 days from the redemption date for the entity to receive the coupons from the retailers. The entity reimburses the retailers an additional P 5 for each coupon redeemed. On December 31, 2021, DOCK OCK had paid retailers for an amount equivalent to 5,000 coupons. The promotion is only a part of its marketing strategy to promote their products. What amount should be reported liability for coupons on December 31, 2021?
Transcribed Image Text:6. DOCK OCK Corp. frequently distributes coupons to promote new products. On October 1, 2021, the entity mailed 100,000 coupons for 45 off each box of cereal purchased and expected 12,000 of these coupons to be redeemed. It takes 30 days from the redemption date for the entity to receive the coupons from the retailers. The entity reimburses the retailers an additional P 5 for each coupon redeemed. On December 31, 2021, DOCK OCK had paid retailers for an amount equivalent to 5,000 coupons. The promotion is only a part of its marketing strategy to promote their products. What amount should be reported liability for coupons on December 31, 2021?
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS