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What amount would trumptastic record as rebate expense

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As a promotion to increase sales of its new dystopian children's story book characters line, TrumpTastic, Inc. is offering a $10 rebate to customers who purchase 4 story book characters, each at $30, and send in the SKU codes from those purchases. TrumpTastic expects 60% of their sales to be from the story book line and that 50% of those will redeem the rebate. TrumpTastic estimates $10,800,000 in sales in 2021.

Problem (a) What amount would TrumpTastic record as rebate expense in 2021?

Problem (b) What would be the balance in the rebate liability account at 12-31-2021?

Reference no: EM132948928

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