Miracle Company manufactures a product that is packaged and sold. Each sale is accompanied by 3 coupons to be able to purchase a plate. A plate is offered to customers sending two coupons accompanied by a remittance of P2. 2018 2019 Sale @ 250 Purchase of premium, P10 per plate Number of plates distributed as premiums Premiums distributed Distribution cost P5 per plate QUESTIONS: 1) What is the premium expense for 2018? 2) How much is the premium liability as of December 31, 2019? 4,200,0003,600,000 580,000 390,000 80% 70% 17,000 13,000
Miracle Company manufactures a product that is packaged and sold. Each sale is accompanied by 3 coupons to be able to purchase a plate. A plate is offered to customers sending two coupons accompanied by a remittance of P2. 2018 2019 Sale @ 250 Purchase of premium, P10 per plate Number of plates distributed as premiums Premiums distributed Distribution cost P5 per plate QUESTIONS: 1) What is the premium expense for 2018? 2) How much is the premium liability as of December 31, 2019? 4,200,0003,600,000 580,000 390,000 80% 70% 17,000 13,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 19E
Related questions
Question
![Miracle Company manufactures a product
that is packaged and sold. Each sale is
accompanied by 3 coupons to be able to
purchase a plate. A plate is offered to
customers sending two coupons
accompanied by a remittance of P2.
2018
2019
Sale @ 250
Purchase of premium,
P10 per plate
Number of plates
distributed as premiums
Premiums distributed
Distribution cost P5 per
plate
QUESTIONS:
4,200,0003,600,000
580,000 390,000
80%
70%
17,000
13,000
1) What is the premium expense for 2018?
2) How much is the premium liability as of
December 31, 2019?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50d005c7-810b-4584-891d-052c52a5b27b%2F838f7842-98ed-4ad5-887b-1711e1c7ea62%2Fe728chk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Miracle Company manufactures a product
that is packaged and sold. Each sale is
accompanied by 3 coupons to be able to
purchase a plate. A plate is offered to
customers sending two coupons
accompanied by a remittance of P2.
2018
2019
Sale @ 250
Purchase of premium,
P10 per plate
Number of plates
distributed as premiums
Premiums distributed
Distribution cost P5 per
plate
QUESTIONS:
4,200,0003,600,000
580,000 390,000
80%
70%
17,000
13,000
1) What is the premium expense for 2018?
2) How much is the premium liability as of
December 31, 2019?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning