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Figuring estimated liability
In an effort to incease sales, Rofix Company began a sales promotion campaign on June 30,2011. Part of this promotion included placing a spcail coupon in each package of candy bars sold. Customers were able to redeem ten coupons for a Frisbee. Each premium costs Rofix $1.50. Rofix estimated that 60 percent of the coupons issued will be redeemed. For the six months ended Deceember 31, 2011, the following information is given:
Packages for candy bars sold... 3,200,000 Premiums purchased... 172,000 Coupons redeemed... 1,425,000 What is the estimated liability for premiun claims outstanding at Dec. 31,2011? I will like help figuring this out.:confused: |
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