Problem 2: JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is P10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, P50 per unit Towel purchases, P9o per unit Number of box tops returned 2,500,000 337,500 2,875,000 360,000 38,550 22,500 Requirements: 5. Compute for the premiums expense for the year ended: A. December 31, 2020 B. December 31, 2021
Problem 2: JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is P10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, P50 per unit Towel purchases, P9o per unit Number of box tops returned 2,500,000 337,500 2,875,000 360,000 38,550 22,500 Requirements: 5. Compute for the premiums expense for the year ended: A. December 31, 2020 B. December 31, 2021
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 29CE: Unearned Sales Revenue Brand Landscaping offers a promotion where a customers lawn will be mowed 20...
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