How much should almond recognize as expense

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Problem 1: ALMOND Bottling Corporation embarked on a promotional program whereby a can opener costing ?13 each is given away for every 10 bottle crowns returned plus ?5. ALMOND also pays ?2 per can opener for handling and shipping cost. ALMOND estimates that only 40% of the bottle crowns in the hands of consumers will be presented for redemption. The following information is available: Bottles sold - 1,000,000 units amounting to ?5,000,000; Can openers bought for giveaways - 15,000 units amounting to ?195,000; Can openers distributed to customers - 10,000 units. At the close of the first year, how much should ALMOND recognize as expense for the promotional program?

Option 1: ? 400,000

Option 2: ? 100,000

Option 3: ? 300,000

Option 4: ? 150,000

Reference no: EM132998725

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