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Estimated Liability For Premiums On) Ecember 31,2013 A.1$0, 000b.22, 000 c.2 - , 000d.3-, 00

The document discusses the estimated liability for unredeemed coupons related to a promotional program by Day Company, which sold 100,000 boxes of cave mix. Each box contained a coupon for a banking pan, with costs associated with redemption and handling. The company estimated a 70% redemption rate despite only 300,000 coupons being processed in 2013.

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31 views5 pages

Estimated Liability For Premiums On) Ecember 31,2013 A.1$0, 000b.22, 000 c.2 - , 000d.3-, 00

The document discusses the estimated liability for unredeemed coupons related to a promotional program by Day Company, which sold 100,000 boxes of cave mix. Each box contained a coupon for a banking pan, with costs associated with redemption and handling. The company estimated a 70% redemption rate despite only 300,000 coupons being processed in 2013.

Uploaded by

Kpop Lovers
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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estimated liability

for premiums
on )ecember
31,2013a.1$0
,000b.22*,000
c.2--,000d.3-
*,00
Problem 1-2
)uring 2013, )ay 
Company sold 
00,000 bo(es
of cae mi( und
er a ne& salesp
romotional
program. !ach
bo( contained
one coupon, to
&hich entitled
the customer toa
baning pan
upon remittance
of "*0. The entity
paid "0 per pan
and " for
handlingand
shipping and
estimated that -
0% of coupons
&ould
redeemed, e#en
though
only300,000
coupons had
been processed
during 2013.
+hat amount
should be
reportedas a
liability for
unredeemed

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