What is the rebate promotion liability that Holyoak should report in its December 31, 2013, balance sheet?
A)$20,000.
B)$28,000.
C)$18,000.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

Holyoak should report the estimated liability for rebate promotion in its balance sheet. Based on the information provided, the company estimates the rebate obligations to be $28,000 as of December 31, 2013. Therefore, the correct option is B. Option A is incorrect because it is lower than the actual estimated liability, and option C is incorrect because it is higher than the estimated liability. Option D is incorrect because one of the other options is correct.

What Is the Rebate Promotion Liability That Holyoak Should Report