Baker Co. sells consumer products that are packaged in boxes. Baker offered its customers a promotion during the current year. The customer would receive an unbreakable glass in exchange for a) two box tops and b) $1. The cost of the glass was $2.00. Baker sold 100,000 boxes of the product and estimates that 50% of those box tops will be redeemed for glasses. During the current year 40,000 box tops were redeemed for the glasses. What amount should Baker accrue as an estimated liability at the end of the current year, related to the redemption of box tops?

multiple choice

A) $-0-

B) $5,000

C) $20,000

D) $25,000