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What amount should Ivanhoe report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons $ 243,694 3. Shamrock Company sold 743,600 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.30, entitles the customer to a baking pan. Shamrock pays $6.30 per pan and $0.80 for handling and shipping. Shamrock estimates that 70% of the coupons will be redeemed, even though only 245,500 coupons had been processed during 2025. What amount should Shamrock report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons at December 31, 2025 $ 2,549,432 BOO

What amount should Ivanhoe report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons $ 243,694 3. Shamrock Company sold 743,600 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.30, entitles the customer to a baking pan. Shamrock pays $6.30 per pan and $0.80 for handling and shipping. Shamrock estimates that 70% of the coupons will be redeemed, even though only 245,500 coupons had been processed during 2025. What amount should Shamrock report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons at December 31, 2025 $ 2,549,432 BOO

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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2. In packages of its products, Ivanhoe Inc. includes coupons that may be presented at retail stores to obtain discounts on other Ivanhoe products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Ivanhoe honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Ivanhoe estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Ivanhoe during 2025 is as follows. Consumer expiration date Total face amount of coupons issued Total payments to retailers as of 12/31/25 12/31/25 Liability for unredeemed coupons $ $857,400 322,190 What amount should Ivanhoe report as a liability for unredeemed coupons at December 31, 2025? 243,694 3. Shamrock Company sold 743,600 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.30, entitles the customer to a baking pan. Shamrock pays $6.30 per pan and $0.80 for handling and shipping. Shamrock estimates that 70% of the coupons will be redeemed, even though only 245,500 coupons had been processed during 2025. What amount should Shamrock report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons at December 31, 2025 $ 2,549,432
Transcribed Image Text:2. In packages of its products, Ivanhoe Inc. includes coupons that may be presented at retail stores to obtain discounts on other Ivanhoe products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Ivanhoe honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Ivanhoe estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Ivanhoe during 2025 is as follows. Consumer expiration date Total face amount of coupons issued Total payments to retailers as of 12/31/25 12/31/25 Liability for unredeemed coupons $ $857,400 322,190 What amount should Ivanhoe report as a liability for unredeemed coupons at December 31, 2025? 243,694 3. Shamrock Company sold 743,600 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.30, entitles the customer to a baking pan. Shamrock pays $6.30 per pan and $0.80 for handling and shipping. Shamrock estimates that 70% of the coupons will be redeemed, even though only 245,500 coupons had been processed during 2025. What amount should Shamrock report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons at December 31, 2025 $ 2,549,432
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