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Question- Yummy Rice Cereal offers an all-star bowl in exchange for three return box tops. Yummy Rice estimates that 30% will be redeemed. The bowls cost Yummy Rice $1 each. In 2013, 5,000,000 boxes of cereal were sold. By year-end 900,000 box tops had been redeemed.
Required: Calculate the liability that Yummy Rice should report at December 31, 2013.
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During the last month of 2009, the first month of the offer, Funzy sold 12 million boxes of Wheatos and 2.4 million of the coupons were redeemed.
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