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Connor Company must make computations and adjusting entries for the following two independent situations at December 31, 2023. With some of its products, Connor includes
Connor Company must make computations and adjusting entries for the following two independent situations at December 31, 2023. With some of its products, Connor includes coupons that are redeemable in merchandise. The coupons have no expiration date and, in the company's experience, 40% of them are redeemed. The liability for unredeemed coupons at December 31, 2022, was $12,000. During 2023, coupons worth $40,000 were issued, and merchandise worth $10,000 was distributed in exchange for coupons redeemed. 1) Compute the amount of the liability that should appear on the December 31, 2023, balance sheet
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