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 2014 Flavor issued two separate series of coupons as follows: The only journal entry recorded to date is: debit to coupon expense and credit to cash of $715,000. The December 31, 2014 balance sheet should include a liability for unredeemed coupons of:

Question

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 2014 Flavor issued two separate series of coupons as follows:  The only journal entry recorded to date is: debit to coupon expense and credit to cash of $715,000. The December 31, 2014 balance sheet should include a liability for unredeemed coupons of:

Quizplus · Accepted Answer

The Answer of 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 2014 Flavor issued two separate series of coupons as follows:  The only journal entry recorded to date is: debit to coupon expense and credit to cash of $715,000. The December 31, 2014 balance sheet should include a liability for unredeemed coupons of:

Flavor Food Company Distributes to Consumers Coupons Which May Be