Fruit Flakes is a regional distributor of cereal. As a promotion, it offered $2.00 cash rebates on 64 oz. boxes of cereal. Customers must mail in a proof of purchase seal from the package plus the receipt to receive the rebate. Experience suggests that 60% of the rebates will be claimed. Forty thousand of the qualifying boxes of cereal were sold in 2019.

Determine if a Liability exists at 12/31/19? If so, enter amount in highlighted box and show work below: