In packages of its products, PLACID, INC.includes coupons that may be presented atretail stores to obtaindiscounts on other Placid products. Retailersare reimbursed for the face amount ofcoupons redeemed plus10% of that amount for handling costs. Placidhonors requests for coupon redemption byretailers up to 3months after the consumer expiration date.Placid estimates that 60% of all couponsissued will ultimately beredeemed. Information relating to couponsissued by Placid during 2020 as follows:Consumer expiration date December 31, 2020Total payments to retailers as of December 31,2020 Php 165,000Liability for unredeemed coupons as ofDecember 31, 2020 Php 99,000Required:2. What is the total face amount of couponsissued by Placid, Inc. in 2020?

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Answered: 2020 Php 165,000 Liability for…

2020 Php 165,000 Liability for unredeemed coupons as of December 31, 2020 Php 99,000 Required: 2. What is the total face amount of coupons issued by Placid, Inc. in 2020?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 7DQ

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