Explain how much liability for outstanding premiums

Assignment Help Financial Accounting

Reference no: EM13129317

LeMay Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops from LeMay Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 2012, the company sold 500,000 boxes of Frosted Flakes and customers redeemed 220,000 boxtops receiving 55,000 bowls. If the bowls cost LeMay Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2012.

Reference no: EM13129317

Questions Cloud

What is the final temperature : What is the final temperature when 125 g of iron at 92.3 °C is dropped into 50.0 g of water at 27.7 °C? The specific heat of iron is 0.444 J g-1 °C-1 and the specific heat of water is 4.184 J g-1 °C-1.

Audit functions in your organization : Relate your explanation to the audit functions in your organization, or an organization with which you are familiar.

Explain important information about proteins : Important information about Proteins, A globular protein in aqueous surroundings contains the following amino acid residues; phenylamine, methionine, glutamate, lysine, and alanine.

What is the ph at the half-stoichiometric point : What is the pH at the half-stoichiometric point (half-way to the endpoint) for the titration of 0.22 M HNO2(aq) with 0.10 M KOH(aq)?

Explain how much liability for outstanding premiums : If the bowls cost LeMay Company $3 each, explain how much liability for outstanding premiums should be recorded at the end of 2012.

Questions about electrons : Give the number of electrons, Protons and neutrons in 24NA and give the electron configuration of the following A: A1 B: F- (- is at the top)

What is the return on equity : A company has taxable income of $1,760 with a tax rate of 38 percent. Owners equity is: $400 in stock, $200 in capital surplus, and $200 in retained earnings. What is the return on equity (ROE)?

Define advantages and disadvantages to fsc decision : What are the advantages and disadvantages to FSC's decision to not use the BSC as a performance tool- i.e., linking it to the employee evaluation and reward system?

Methods of integration and methods of differentiation : Discuss the similarities you found in methods of integration and methods of differentiation with example please

User Account

All Pages