Question
Ioj Co. includes one coupon in each bag of dog food it sells. In return for four coupons, customers receive a leash. The leashes cost
Ioj Co. includes one coupon in each bag of dog food it sells. In return for four coupons, customers receive a leash. The leashes cost Ioj 4.00 each. Mott estimates that 40 percent of the coupons will be redeemed. The number of Bags of dog food sold, Leashes purchased, and Coupons redeemed were as follows, respectively: 250,000, 18,000, 60,000 in 2018, and 300,000, 22,000, 75,000 in 2019. (Three questions are based on this information.) The premium liability at December 31, 2018 is
Select one:
a.40,000.
b.20,000.
c.35,000.
d.None of these answers.
e.15,000.
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