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In packages of its products, Sarasota Inc. includes coupons that may be presented at retail stores to obtain discounts on other Sarasota products. Retailers are
In packages of its products, Sarasota Inc. includes coupons that may be presented at retail stores to obtain discounts on other Sarasota products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Sarasota honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Sarasota estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Sarasota during 2025 is as follows: Consumer expiration date 12/31/25 Total face amount of coupons issued $845,700 Total payments ot retailers as of 12/31/25 297,660 What amount should Sarasota report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons
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