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During the current year, Jolly Company offered a P20 cash rebate coupon to customers who purchased one of its new line of products. The entity
During the current year, Jolly Company offered a P20 cash rebate coupon to customers who purchased one of its new line of products. The entity sold 10,000 of these products during the current year. By year-end, 7,600 of the rebates had been claimed and 7,100 had been paid. The historical experience with such rebates indicated that 85% of customers claim the rebates.
What amount should be reported as rebate expense for the current year?
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