Compute the amount of the liability that should appear


With some of its products, Schmitt Company includes coupons that are redeemable in merchandise. The coupons have no expiration date and, in the company's experience, 40% of them are redeemed. The liability for unredeemed coupons at December 31, 2010, was $9000. During 2011, coupons worth $30,000 were issued, and merchandise worth $8000 was distributed in exchange for coupons redeemed.

Instructions

Compute the amount of the liability that should appear on the December 31, 2011, balance sheet

 

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Accounting Basics: Compute the amount of the liability that should appear
Reference No:- TGS0101323

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