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Business, 21.12.2019 07:31 zakarycrane5723
Flavor food company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on certain products of flavor. the grocers are reimbursed when they send the coupons to flavor. in flavor's experience, 50% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date flavor receives it. during 2018 flavor issued two separate series of coupons as follows: consumer amount disbursed issued on total value expiration date as of 12/31/18 1/1/18 $500,000 6/30/18 $236,000 7/1/18 840,000 12/31/18 350,000 the only journal entry recorded to date is: debit to coupon expense and credit to cash of $815,000. the december 31, 2018 balance sheet should include a liability for unredeemed coupons of:
a) $0.
b) $70,000.
c) $184,000.
d) $420,000.
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