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pls don't handwriting B. Beauty products sold by Tradisi Berseri Bhd (TRADISI) are in boxes of RM10 per box. TRADISI includes one coupon in each
pls don't handwriting
B. Beauty products sold by Tradisi Berseri Bhd (TRADISI) are in boxes of RM10 per box. TRADISI includes one coupon in each box sold. In return for 4 coupons, customers receive a tote bag that the company purchases for RM2.20 each. TRADISI's experience indicates that 60 percent of the coupons will be redeemed. During 2020, 100,000 boxes of beauty products were sold, 12,000 tote bags were purchased, and 40,000 coupons were redeemed. During the first quarter of 2021, RM70,000 of beauty products were sold and 2,000 coupons were redeemed. The coupons are valid for two (2) years. REQUIRED: (a) Prepare the journal entries in relation to the provision liability that should be recorded by Tradisi Berseri Bhd in its first quarter of the year 2021.4 (3-Marks) (b) Determine the premium liability that should be reported by Tradisi Berseri Bhd as at it first quarter of 2021. (1 Mark) 2Step by Step Solution
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