Exercise 13-15 Presented below are three independent situations. 1. Monty Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Monty's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Monty's liability for stamp redemptions was $13,490,800 at December 31, 2019. Additional information for 2020 is as follows. Stamp service revenue from stamps sold to licensees Cost of redemptions (stamps sold prior to 1/1/20) $9,115,400 5,965,300 If all the stamps sold in 2020 were presented for redemption in 2021, the redemption cost would be $5,457,300. What amount should Monty report as a liability for stamp redemptions at December 31, 2020? Liability for stamp redemptions at December 31, 2020 $ 2. In packages of its products, Flounder Inc. includes coupons that may be presented at retail stores to obtain discounts on other Flounder products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Flounder honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Flounder estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Flounder during 2020 is as follows. Consumer expiration date Total face amount of coupons issued Total payments to retailers as of 12/31/20 12/31/20 $834,500 350,560 What amount should Flounder report as a liability for unredeemed coupons at December 31, 2020? Liability for unredeemed coupons 3. Culver Company sold 666,000 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.30, entitles the customer to a baking pan. Culver pays $6.30 per pan and $0.80 for handling and shipping. Culver estimates that 70% of the coupons will be redeemed, even though only 263,100 coupons had been processed during 2020. What amount should Culver report as a liability for unredeemed coupons at December 31, 2020? Liability for unredeemed coupons at December 31, 2020