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Presented below are three independent situations. Martin Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are

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Presented below are three independent situations. Martin Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Martin's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Martin's liability for stamp, redemptions was exist13,000,000 at December 31, 2014. Additional information for 2015 is as follows. If all the stamps sold in 2015 were presented for redemption in 2016, the redemption cost would be exist5, 200,000. What amount should Martin report as a liability for stamp redemptions at December 31, 2015? In packages of its products, Wiseman Inc. includes coupons that may be presented at retail stores to obtain discounts on other Wiseman products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Wiseman honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Wiseman estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Wiseman during 2015 is as follows. What amount should Wiseman report as a liability for unredeemed coupons at December 31, 2015? Newell Company sold 600,000 boxes of pie mix for exist6,000,000 under a new sales promotional program. Each box contains one coupon, which when submitted with exist4.00, entitles the customer to a baking pan. Newell pays exist6.00 per pan and exist0.50 for handling and shipping. Newell estimates that 70% of the coupons will be redeemed even though only 250,000 coupons had been processed during 2015. What amount should Newell report as a liability for unredeemed coupons at December 31, 2015

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