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Exercise 13-15 Presented below are three independent situations Sunland Stamp Company records stamp service revenue and provides for the cost of redemptions in the year

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Exercise 13-15 Presented below are three independent situations Sunland Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Sunland's past experience indicates that only 80% f the stamps sold to licensees wil berede med Sunland's lab ty information for 2017 is as follows. or sta p rede ptions was S 14,137,000 at December 3, 2016. Additional Stamp service revenue from stamps sold to licensees Cost of redemptions (stamps sold prior to 1/1/17) $9,833,300 6,028,000 If all the stamps sold in 2017 were presented for redemption in 2018, the redemption cost would be ss,146,500. what amount should Sunland report as a liablity for stamp redemptions at December 31, 2017? n in 2018,the redemotion cet wlbe,so. what amount shouls sunland eport as a lability fr ap Uability for stamp redemptions at December 31, 2017 s 2. In packages of its products, Coronade Inc. includes coupons that may be presented at retail stores to obtain discounts on other Coronado products, Retailers are reimbursed for the ace amount o coupons redeemed plus 10% o that amount for handling costs. Coronado honors reg ts for coupon redernpt or y retallers up to 3 months after the consumer expiration date. Coronado as follows estimates that 60% of all coupons issued will ultimately be redeemed information relating to coupons issued by Coronado during 2017 is Consumer expiration date Total face amount of coupons issued Total payments to retailers as of 12/31/17 What amount should Coronado report as a liability for unredeemed coupons at Decermber 31, 2017 2/31/17 $870,200 314,520 Liability for unredeerned coupons 3. Whispering Company sold 707,000 boxes of pie mix under a new sales promotional program. Each box contains one c customer to a baking pan. Whispering pays S6 10 p r pan and So 60 f handing and shipping whispering estimates that 70% of the pe s wil bere ed even h oniy 273,800 coupons had been processed during 2017 What amount should Whispering report as a liability for unredeemed coupons at December 31, 2017? oupon, which submitted with $4.10, entitles the gh Liability for unredeemed coupons at December 31, 2017

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