Question
Question 5 (5 points) In 2021, Holyoak, Inc. offers a coupon for $20 off qualifying purchases of its new line of products. Holyoak sold 10,000
Question 5 (5 points)
In 2021, Holyoak, Inc. offers a coupon for $20 off qualifying purchases of its new line of products. Holyoak sold 10,000 of these products during the year. By the end of 2021, 7,100 coupons had been redeemed and the $20 reduction of the purchase price provided to customers. Holyoak's historical experience with such coupons indicates that 85% of customers use the coupon. Holyoak recognizes coupon expense in the period coupons are issued. What's the coupon promotion liability that Holyoak should report in its December 31, 2021, balance sheet?
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