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In packages of its products, PLACID, INC. includes coupons that may be presented at retail stores to obtain discounts on other Placid products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Placid honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Placid estimates that 60% of all coupons issued will ultimately be redeemed.
Information relating to coupons issued by Placid during 2020 as follows:
Consumer expiration date December 31, 2020
Total payments to retailers as of December 31, 2020 Php 165,000Liability for unredeemed coupons as of December 31, 2020 Php 99,000
Problem 1: What is the total face amount of coupons issued by Placid, Inc. in 2020?
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