REQUIRED:

Compute for the Premium Liability for the year ended:

a. December 31, 2020

b. December 31, 2021

JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and a remittance of P25. Distribution cost is Pio per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2021 Facial soap sales, P50 per unit 2,500,000 2,875,000 Towel purchases, P90 per unit 337,500 360,000 Number of box tops returned 22,500 38,550 2020