How much liability for outstanding premiums should be record

Assignment Help Accounting Basics
Reference no: EM131752967

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

Reference no: EM131752967

Questions Cloud

New strategy for global leader : Identifying and creating new markets - a new strategy for global leader. Develop strategies that could result in organization taking better marketing decisions.
What is a mission statement : What is a mission statement? What are organizational values? What are the steps in the strategic management process?
Evidence to support the claim made by aries wallcoverings : Manufacturing and Product Development The tear strength, tensile strength, backing, and thickness all contribute to the durability of vinyl wallpaper.
What is the annual amortization of goodwill : Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition
How much liability for outstanding premiums should be record : If the bowls cost Milner Company $2.50 each, how much liability for outstanding premiums should be recorded at the end of 2008
Higher loyalty from among the target audience : Advertisement expense are usually wasteful, with no guarantee of enhanced sales or higher loyalty from among the target audience.
Analysis aspects of all cost drivers : how many would you use and what cost drivers would use for each pool. I would suggest your report, review both of these option and make a recommendation
What is interest expense : The proceeds from the bonds are $19,604,145. What is interest expense for 2008, using straight-line amortization
Determine that the two population means are different : Using the confidence interval in part (a), is there any evidence to suggest that the two population means are different? Justify your answer.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Cost allocation is a method to identify and distribute

cost allocation is a method to identify and distribute indirect costs. direct costs are costs assignable to a specific

  On november 1 2013 abc company borrowed 200000 for 90 days

on november 1 2013 abc company borrowed 200000 for 90 days at 9 interest by signing a note. assume that the face value

  Minist corporation sells a single product for 20 per unit

minist corporation sells a single product for 20 per unit. last year the companys sales revenue was 260000 and its net

  Ranger glass company manufactures glass for french doors at

ranger glass company manufactures glass for french doors. at the start of may 2000 units were in-process. during may

  Prepare journal entries for the transactions

Prepare journal entries for the transactions listed above.

  Which of the following statements is most likely to be

which of the following statements is most likely to be correct for a project in which the npv is negative when based on

  Which costing approach will produce the higher income

Write a short memo to the chief financial officer explaining which costing approach will produce the higher income and what the difference will be.

  What is an accounting period

What is an accounting period?

  Net income for a merchandising company

Determine whether or not the measurement of net income for a merchandising company conceptually is the same for a service company.

  Decision on accepting additional business

Decision on Accepting Additional Business

  Neeley company combines its operating expenses for budget

neeley company combines its operating expenses for budget purposes in a selling and administrative expense budget. for

  Shipyard corp acquired boatworks corp in a type a

shipyard corp. acquired boatworks corp. in a type a reorganization on july 1 2012. on the date of acquisition boatworks

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd