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Question - Tesla Company started a new promotional program on April 1, 2019. For every 10 box tops returned to Tesla along with P50 payment, customers receive an elegant planner notebook. Tesla estimates that only 80% of the box tops reaching the market will be redeemed. Additional information is as follows for the 9 months ended December 31, 2019:
Units Amount
Sales of product 110,000 P19,250,000
Planner purchased 6,500 P2,600,000
Planner distributed 4,800
Compute for the balances of the following at December 31, 2019 for Tesla Company:
1. Premium expense
2. Estimated premium liability
3. Premiums
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