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During the current year, Deluxe company sold 80,000 reversible belts under a new sales promotional program. Each belt carried one coupon which entitled the customer
During the current year, Deluxe company sold 80,000 reversible belts under a new sales promotional program. Each belt carried one coupon which entitled the customer to a P50 cash rebate. The entity estimated that 70% of the coupons will be redeemed, even though only 35,000 coupons had been processed during the current year.
At year-end, what amount should be reported as estimated rebate liability?
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