Presented below are three independent situations. 1. Shamrock Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Shamrocks past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Shamrocks liability for stamp redemptions was $12,357,900 at December 31, 2019. Additional information for 2020 is as follows.

Stamp service revenue from stamps sold to licensees		$8,612,300
Cost of redemptions (stamps sold prior to 1/1/20)		6,232,300

If all the stamps sold in 2020 were presented for redemption in 2021, the redemption cost would be $5,208,300. What amount should Shamrock report as a liability for stamp redemptions at December 31, 2020?

Liability for stamp redemptions at December 31, 2020

$

2. In packages of its products, Bridgeport Inc. includes coupons that may be presented at retail stores to obtain discounts on other Bridgeport products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Bridgeport honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Bridgeport estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Bridgeport during 2020 is as follows.

Consumer expiration date		12/31/20
Total face amount of coupons issued		$772,900
Total payments to retailers as of 12/31/20		336,430

What amount should Bridgeport report as a liability for unredeemed coupons at December 31, 2020?

Liability for unredeemed coupons

$

3. Indigo Company sold 741,500 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.10, entitles the customer to a baking pan. Indigo pays $6.10 per pan and $0.60 for handling and shipping. Indigo estimates that 70% of the coupons will be redeemed, even though only 257,600 coupons had been processed during 2020. What amount should Indigo report as a liability for unredeemed coupons at December 31, 2020?

Liability for unredeemed coupons at December 31, 2020

$