EDSA Company provided the following information on December 31 , 2020: a) Payroll contribution and taxes withheld from employees 900,000.00 b) Cash balance at PNB 2,500,000.00 c) Cash overdraft at BDO 100,000 d) Accounts receivable with credit balance 750,000.00 d) Estimated expenses of meeting warranties on merchandise previously sold 500,000.00 e) Estimated damages as a result of unsatisfactory performance on a contract (50% chance the company will lost) 1,500,000.00 f) Accounts payable 3,000,000.00 g) Deferred 5 year serial bonds , issued at par and bearing at 12% interest , payable in semi annual installment of 500,000.00 due April 1 and October 1 of each year. The interest in Serial bonds payable is also paid semi annually. h) Stock dividends payable 2,000,000.00. I) Trade notes payable payable in year 2022 - 200,000.00.

9,970,000.00

6,470,000.00

6,570,000.00

7,851,000.00

During the current year, EDSA Company sold 80,000 reversible belts under a new sales promotional program program . Each belt carried one coupon which entitled the customer to a 50.00 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 as estimated rebate liability.

1,225,000

1,750,000

1,050,000

0

EDSA Company reported the following liability balances on December balance on December 31, 2020: a) 12% notes payable issued on March 1, 2019 maturing on March 1, 2021 - 7,000,000.00 b) 10% Notes payable issued on October 1, 2019 maturing October 1, 2021 - 4,000,000.00. The financial statement were issued on March 31, 2021. ** On January 31, 2021, the entire 7,000,000 balance of the 12% note payables was refinanced through issuance of long term obligation payable lump sum . ** On the other hand , Under the loan agreement for the 10% note payable , the entity has the discretion to refinance the obligation for at least twelve months after December 31 , 2020 . What amount of notes payable should be classified as current on December 31, 2020

7,000,000.00

4,000,000.00

11,000,000.00

0