Rosas Company started a promotional program in which for every 15 box tops returned, customers received a special mug. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information for the current year:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Rosas Company started a promotional program in which for every 15 box tops returned, customers received a special mug. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information for the current year:

 

 

Units
Amount
20,000,000
150,000
Product Sales
10,000
Mugs purchased
Mugs distributed
500
350
What amount should be recorded by Rosas Company as Estimated Liability for the current year?
Transcribed Image Text:Units Amount 20,000,000 150,000 Product Sales 10,000 Mugs purchased Mugs distributed 500 350 What amount should be recorded by Rosas Company as Estimated Liability for the current year?
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