question- milner frosted flakes company offers


Question:- Milner Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 box tops from Milner Frosted Flakes boxes and $1.00. The company estimates that 60% of the box tops will be redeemed. In 2008, the company sold 675,000 boxes of Frosted Flakes and customers redeemed 330,000 box tops receiving 110,000 bowls. If the bowls cost Milner Company $2.50 each, how much liability for outstanding premiums should be recorded at the end of 2008?

A) $25,000

B) $37,500

C) $62,500

D) $87,500

 

 

Solution Preview :

Prepared by a verified Expert
Accounting Basics: question- milner frosted flakes company offers
Reference No:- TGS0487354

Now Priced at $5 (50% Discount)

Recommended (92%)

Rated (4.4/5)