Solved: Mott co includes one coupon in each bag of dog food it sell, Accounting Basics

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Mott co includes one coupon in each bag of dog food it sell

Question - Mott co includes one coupon in each bag of dog food it sell. In return for 8 coupons, customers receive a leash. The leashes cost Mott 2.00. Mott estimates that 40 % of the coupons will be redeemed. Data for 2010 and 2011 are as follows: 2010 bags of dog food sold: 500,000; leashes purchased: 18,000; coupons redeemed 120,000.

What is the premium expense for 2010?

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Accounting Basics: Mott co includes one coupon in each bag of dog food it sell

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Accounting Basics: Mott co includes one coupon in each bag of dog food it sell

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