Captain cook report as a liability for coupons

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Reference no: EM131220376

Captain Cook Cereal includes one coupon in each package of Granola that it sells and offers a puzzle in exchange for $2.50 and 3 coupons. The puzzles cost Captain Cook $3.40 each. Experience indicates that 30% of the coupons eventually will be redeemed. During the last month of 2013, the first month of the offer, Captain Cook sold 6.20 million boxes of Granola and 800,000 of the coupons were redeemed. What amount should Captain Cook report as a liability for coupons on its December 31, 2013, balance sheet? (Round your answer to the nearest whole dollar amount.)

Reference no: EM131220376

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