Krypton Foods distributes coupons to consumers which may be presented, on or before a stated expiry date, to grocery stores for discounts on certain Krypton products.The stores are reimbursed when they send the coupons in to Krypton.In Krypton's experience, only about 50% of these coupons are redeemed.During 2014, Krypton issued two separate series of coupons as follows: Krypton's only journal entries for 2014 recorded debits to coupon expense, and credits to cash of $268,000.Their December 31, 2014 statement of financial position should include a liability for unredeemed coupons of

Question

Krypton Foods distributes coupons to consumers which may be presented, on or before a stated expiry date, to grocery stores for discounts on certain Krypton products.The stores are reimbursed when they send the coupons in to Krypton.In Krypton's experience, only about 50% of these coupons are redeemed.During 2014, Krypton issued two separate series of coupons as follows:  Krypton's only journal entries for 2014 recorded debits to coupon expense, and credits to cash of $268,000.Their December 31, 2014 statement of financial position should include a liability for unredeemed coupons of

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The Answer of Krypton Foods distributes coupons to consumers which may be presented, on or before a stated expiry date, to grocery stores for discounts on certain Krypton products.The stores are reimbursed when they send the coupons in to Krypton.In Krypton's experience, only about 50% of these coupons are redeemed.During 2014, Krypton issued two separate series of coupons as follows:  Krypton's only journal entries for 2014 recorded debits to coupon expense, and credits to cash of $268,000.Their December 31, 2014 statement of financial position should include a liability for unredeemed coupons of

Krypton Foods Distributes Coupons to Consumers Which May Be Presented