Compute what amount should reported as liability for coupons

Reference no: EM132726071

Problem 1: Quaker Company distributed coupons to promote new products. On October 1, 2017, the entity nailed 100,000 coupons for $45 off each box of cereal purchased. The entity expected 12,000 of these coupons to be redeemed before the December 31, 2017 expiration date. It takes 30 days from the redemption date for the entity to receive the coupons from the retailers. The entity reimbursed the retailers an additional $5 for each coupon redeemed. On December 31, 2017, the entity had paid retailers $250,000 related to these coupons and had 5,000 coupons on hand that had not been processed for payment. What amount should be reported as liability for coupons on December 31, 2017?

Reference no: EM132726071

Questions Cloud

Demonstrate what total amount reported as intangible assets : Merriam Ltd. commenced operations in the current year. Demonstrate What total amount should be reported as intangible assets?

How do tax breaks constitute a missed opportunity : How do tax breaks constitute a missed opportunity?

Virtualization and cloud computing world : Analyze three considerations that the organization's management should be aware of.

Months of a delta neutral portfolio : If you are short one call option, what is the future value in 3 months of a delta neutral portfolio.

Compute what amount should reported as liability for coupons : On October 1, 2017, the entity nailed 100,000 coupons for $45 off. What amount should be reported as liability for coupons on December 31, 2017?

Illustrate the carrying value of the bonds on december : Payable annually on July 1. Harvard uses the interest method to amortize bond discount. Determine the carrying value of the Bonds on December 31, 20x6

Determine the var with a confidence level : Use the cumulative loss distribution in portfolio value to determine the VaR with a confidence level of 99.5% and a one-year time horizon.

Error-free storage of digital information : Chapter reading, digital preservation can be defined as the long-term, error-free storage of digital information, with means for retrieval and interpretation

Explain corruption and fraud in the business world : Explain corruption and fraud in the business world, briefly reflect on fraud and corruption in the South African public and private sector and it examples

User Account

All Pages