Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a basketball. The entity estimated that only 60% of the box tops reaching the market would be redeemed. Sales of products 100,000 units for P 30,000,000 Basketballs purchased 5,500 units for P 4,125,000 Basketballs distributed 4,000 units . What is the premium expense for the year? ______ What is the amount of year -end estimated liability associated with this promotion? ________ respectively * A.4,125,000 and 3,000,000 B.7,500,000 and 4,500,000 C.4,500,000 and 1,500,000 D.1,500,000 and 1,500,000 E.4,500,000 and 4,125,000
Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a basketball. The entity estimated that only 60% of the box tops reaching the market would be redeemed. Sales of products 100,000 units for P 30,000,000 Basketballs purchased 5,500 units for P 4,125,000 Basketballs distributed 4,000 units . What is the premium expense for the year? ______ What is the amount of year -end estimated liability associated with this promotion? ________ respectively * A.4,125,000 and 3,000,000 B.7,500,000 and 4,500,000 C.4,500,000 and 1,500,000 D.1,500,000 and 1,500,000 E.4,500,000 and 4,125,000
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 7MCQ
Related questions
Question
100%
Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a basketball. The entity estimated that only 60% of the box tops reaching the market would be redeemed. Sales of products 100,000 units for P 30,000,000 Basketballs purchased 5,500 units for P 4,125,000 Basketballs distributed 4,000 units . What is the premium expense for the year? ______ What is the amount of year -end estimated liability associated with this promotion? ________ respectively *
A.4,125,000 and 3,000,000
B.7,500,000 and 4,500,000
C.4,500,000 and 1,500,000
D.1,500,000 and 1,500,000
E.4,500,000 and 4,125,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning