Candy Company offers a coffee mug as a premium for every ten 50-cent candy bar...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Candy Company offers a coffee mug as a premium for every ten 50-cent candy bar wrappers presented by customers together with P1.00. The purchase price of each mug to the company is 90 cents; in addition it costs 60 cents to mail each mug. The results of the premium plan for the years 2019 and 2020 are as follows: 2019 2020 Coffee mugs purchased 480,000 400,000 Candy bars sold 3,750,000 4,500,000 Wrappers redeemed 1,900,000 2,800,000 2019 wrappers expected to be redeemed in 2020 1,300,000 2020 wrappers expected to be redeemed in 2021 1,800,000 The estimated liability for premiums as of December 31, 2020 is Group of answer choices P 90,000 P270,000 P162,000 P165,000.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
