The following are three independent situations. 1. Pearl Rewards Inc. provides rewards services to licensees. Pearl records service revenue related to rewards (granted as reward vouchers, which can be redeemed at a variety of retailers) and recognizes the cost of redemptions in the year vouchers are sold to licensees. Pearl's past experience indicates that only 80% of the vouchers sold to licensees will be redeemed. Pearl's liability for stamp redemptions was $12,841.600 at December 31, 2024. Additional information for 2025 is as follows. Service revenue from vouchers sold to licensees Cost of redemptions (vouchers sold prior to 1/1/25) $8,755,100 5,521,500 If all the vouchers sold in 2025 were presented for redemption in 2026, the redemption cost would be $5.569.900. What amount should Pearl report as a liability for voucher redemptions at December 31, 2025? Liability for stamp redemptions at December 31, 2025 $ 2. In packages of its products, Martinez Inc. Includes coupons that may be presented at retail stores to obtain discounts on other Martinez products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Martinez honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Martinez estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Martinez during 2025 is as follows. Consumer expiration date Total face amount of coupons issued 12/31/25 $857,400 Total payments to retailers as of 12/31/25 322.190 What amount should Martinez report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons $ 3. Sandhill Company sold 743,600 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.30, entitles the customer to a baking pan. Sandhill pays $6.30 per pan and $0.80 for handling and shipping. Sandhill estimates that 70% of the coupons will be redeemed, even though only 245,500 coupons had been processed during 2025. What amount should Sandhill report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons at December 31, 2025