Chamberlain chainsaws offers a 20 cash rebate on every 150


Question - Chamberlain chainsaws offers a $20 cash rebate on every $150 chainsaw sold in 2013. Based on prior history, the company expects 20% of customers to mail in the rebate form. During 2013, 25,000 chainsaws were sold and $60,000 in rebates were mailed to customers. What is the rebate expense and liability that should be on the Dec 31, 2013 statement?

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Accounting Basics: Chamberlain chainsaws offers a 20 cash rebate on every 150
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