Question: Yummy rice offer an all start bowl in exchange for 4 coupons. Yummy rice estimates thar 25% of coupons will be redeemed. The bowl cosy Yummy rice $1.40 each. In 2016 5,960,000 coupons were distruted. By year end 924,000 coupons had been redeemed.
Required: Calculated the liability that yummy rice should report at December 31. 2016