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Steps for Current Attempt in Progress Marigold van Leeuwen operates a very busy roadside fruit and vegetable stand from May to October every year as
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Marigold van Leeuwen operates a very busy roadside fruit and vegetable stand from May to October every year as part of his farming operation, which has a December year end and uses ASPE. Each time a customer purchases over $ of produce, Marigold gives the customer a special fruitshaped sticker that can't be copied. If a customer collects of these stickers, they can have $ worth of produce at no charge. The stickers must be redeemed by June of the following year. During the current year, stickers were given out to customers. Marigold knows from experience that some stickers will never be cashed in because the customer may not shop at his stand frequently enough to collect stickers, or they get lost or forgotten. In previous years, of stickers have been redeemed. During the current year, of the stickers given out were redeemed. Marigold uses the expense approach to account for premiums and estimates that product costs are of their selling prices.
a
Your answer is partially correct.
Determine the amount that should be reported as premium expense on the December income statement and the amount of any liability atDecember
Premium expense
Estimated liability for premiums
$
$
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