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Accounting question, please help! Cullumber Italian Foods Company offers its customers a pizza wheel cutter if they send in 4 proof of purchase seals from
Accounting question, please help!
Cullumber Italian Foods Company offers its customers a pizza wheel cutter if they send in 4 proof of purchase seals from its frozen pizza boxes and $1. The company estimates that 60% of the proof of purchase seals will be redeemed. In 2026, the company sold 803000 frozen pizzas and customers redeemed 355000 proof of purchase seals receiving 88750 pizza wheel cutters. If the pizza wheel cutters cost Cullumber $2 each, how much liability for outstanding premiums should be reported at the end of 2026 ? $240900$63400$31700$134400
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