Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in...
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Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakes boxes and \$1. The company estimates that 60% of the boxtops will be redeemed. In 2014, the company sold 675,000 boxes of Frosted Flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. If the bowls cost Palmer Company $4 each, how much liability for outstanding premiums should be recorded at the end of 2014? a. $270,000 b. $50,000 c. $75,000 d. $138,000
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