What is the rebate promotion liability that Holyoak should report in its December 31,2016,balance sheet?
A)$20,000.
B)$28,000.
C)$18,000.
D)$19,000.

Question

Quizplus · Accepted Answer

Based on the information given, the rebate promotion liability as of December 31, 2016, is $28,000. This is calculated by adding the unredeemed rebate balance ($15,000) with the amount of rebates earned but not yet processed ($13,000). Therefore, the correct answer is choice letter B.

What Is the Rebate Promotion Liability That Holyoak Should Report