5 - PREMIUMS In the packages of its products, ALONDRA, INC. includes coupons that may be presented at retail stores to obtain discounts on other Alondra products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Alondra honors requests for coupon redemption by retailers up to 3 months after the consumer 5 expiration date. Alondra estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Alondra during 2007 is as follows: Consumer expiration date 12/31/07 165,000 99,000 Total payments to retailers as of 12/31/07 Liability for unredeemed coupons as of 12/31/07 Questions 1. The total face amount of coupons issued in 2007 is a. P 600,000 b. P 440,000 c. P 400,000 d. P 240,000 2. Coupons expense at year-end is a. P 440,000 b. P 400,000 c. P 264,000 d. P 240,000 4. Estimated liability for unredeemed coupons is a. P 219,000 b. P 123,000 c. P 99,000 d. P 3,000