How much is the estimated liability for premium claims

Assignment Help Accounting Basics
Reference no: EM132832684

Obama Company inaugurated a sales promotional campaign on August 31, 2015 in its desire to improve sales. Obama placed a coupon redeemable for a premium in each ream of bond papers sold. Each premium costs Obama P20 and five coupons must be presented by a customer to receive a premium. Obama estimated that only 70% of the coupons issued would be redeemed.

For the four months ended December 31,2015, the following information is available:

Reams of bond paper sold             Premiums purchased             Coupons redeemed

400,000                                              30,000                                 100,000

Problem 1: How much is the estimated liability for premium claims outstanding at December 31, 2015?

Reference no: EM132832684

Questions Cloud

What amount should be reported as sales revenue : What amount should be reported as sales revenue including the revenue earned from points for 2020? How much is the revenue earned from loyalty points for 2021?
How would you assess that jr is well-controlled : Would a short-burst of oral corticosteroid be indicated at this time? If so, what dose and duration? How would you assess that JR is well-controlled?
Summarizing current regulations laws and equal employment : Deliverance: 4 pages in word document. 1. industry of interest (K-12). 2. Your group must jointly select a specific organization to critique.
Calculate amount of premiums to be presented : Blue manufactures a special product. In an effort to increase sales, Calculate Amount of Premiums to be presented in the balance sheet
How much is the estimated liability for premium claims : How much is the estimated liability for premium claims outstanding at December 31, 2015? Obama Company inaugurated a sales promotional campaign on August 31
Different sessions of the meeting : The prevailing pandemic has restricted most of the employees at their homes to manage their office routines. As a result, employees can only interact
Identify the concept and the related practice problem : Post a cohesive response that addresses the following: Identify the concept and the related practice problem that you have selected for this Discussion.
How does second sight give you special insight : How does second sight give you special insight into the dominant group? What is the veil that DuBois talks about, and how did your experience reveal
The value of fair treatment in the workplac : Analyze, identify, and explain recent legislation that helps to protect employees from discrimination in the workplace.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is meant by the evaluation of a clients ability to

what is meant by the evaluation of a clients ability to continue as a going concern? what are some situations that

  A company desires to replace its current plant equipment

a company desires to replace its current plant equipment with new equipment that costs 10000000. one possibility would

  What are the requirements for the economic effect

Mick, Maryanne and Don are general partners in a partnership that has taxable income this year. Mick has an NOL that is expiring this year while Maryanne.

  Gilmore company paid hendren on august

On August 1, Gilmore Company purchased merchandise from Hendren with an invoice price of $ 60,000 and credit terms of 2/10, n/30.

  Define opportunity costs and the various accounting costs

Define opportunity costs and the various accounting costs (terminology) . In your opinion, why it is important to understand the nature of costs

  What is the amount invested by the company

What is the amount invested by the company in net assets for the current year? How much was the total equity for the current year

  What are the steps used in lean production

What are the steps used in lean production which reduces inventories, decreases defects, reduces wastes, and shortens customer response times.

  Compute brisbane basic and diluted earnings per share

During 2006, the average market price of the common shares was $50 each. Compute Brisbane's basic and diluted earnings per share for 2009

  Determine the cost of goods sold and gross profit

Using the following information, answer the questions. et sales $198,000 and Purchases 92,000. Determine the cost of goods sold and gross profit

  The management of dakota industries obtained the following

1. maxwell company established a center to provide its employee training seminars. maxwell budgeted costs for a weekend

  Travis corporation offers gruner 484 per disc for 5300

materials 10896labor 33369variable overhead 21792fixed overhead 45400total 111457gruner also incurs 6 sales commission

  Which of the following is the deferred tax

A subsidiary sold inventories to its parent for $50 000. Which of the following is the deferred tax item that is recognised on consolidation

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd