Question 20 To boost sales of Product MH, Rio Company started a promo in the...
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Question 20 To boost sales of Product MH, Rio Company started a promo in the beginning of 2020 where four labels can be exchanged for one face shield. Each face shield cost Rio P125 each. Rio purchased a total of 155,000 face shields. Each can of Product MH contains exactly one label. Rio Company estimates that 40% of the products will be used for redemption by the customers. At the end of the 2020, a total of 1,550,000 units of Product MH were sold and 121,875 face shields were redeemed by the customers. Determine the following: 1. Premium Expense recognized in 2020 = 2. Premium Liability by the end of 2020 =
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