2. In packages of its products, Sunland Inc. includes coupons that may be presented at...
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2. In packages of its products, Sunland Inc. includes coupons that may be presented at retail stores to obtain discounts on other Sunland products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Sunland honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Sunland estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Sunland during 2020 is as follows.
Consumer expiration date
12/31/20
Total face amount of coupons issued
$845,700
Total payments to retailers as of 12/31/20
297,660
What amount should Sunland report as a liability for unredeemed coupons at December 31, 2020?
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