Solution-Compute the total promotion rebate expense

Compute the total promotion rebate expense

Reference no: EM132476558

Question - In 2021, Keith Moon Inc. offers a $20 cash rebate coupon to customers who purchased one of its new line of products. Moon sold 10,000 of these products during the year. By the end of 2021, 7,600 of the rebates had been claimed, and 7,100 had been paid. Moon's historical experience with such rebates indicates that 85% of customers claim the rebates. Customers have until June 30, 2022 to claim their rebates.

1. Compute the total promotion rebate expense Moon should report on its 2021 income statement?

A) $142,000

B) $152,000

C) $170,000

D) $200,000

2. Compute the promotion rebate liability Moon would report on its December 31, 2021 balance sheet?

A) $20,000

B) $28,000

C) $18,000

D) $58,000

Reference no: EM132476558

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Compute the total promotion rebate expense

Reference no: EM132476558

Reference no: EM132476558

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