Determine the liability for unredeemed rebate coupons

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Question - BTS sold 880,000 units of polo shirts. Each polo shirt had a rebate coupon which allows the customer to a P 25.00 cash refund when the rebate is submitted for redemption. BTS estimates that 65% of the rebates will be redeemed. During the year, 525,700 rebates were submitted for redemption. Determine the liability for unredeemed rebate coupons to be recognized at year-end.

Reference no: EM133055461

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