The following are three independent situations.

Coronado Rewards Inc. provides rewards services to licensees. Coronado 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 llcensees. Coronado's past experience Indicates that only $80\%$ of the vouchers sold to licensees will be redeemed. Coronado's

liability for stamp redemptions was $$12,963,600$ at December $31,2024.$ Additional information for $2025$ is as follows.

Service revenue from vouchers sold to licensees

$$9,445,400$

Cost of redemptions $($vouchers sold prior to $\frac{1}{1}\frac{?}{25})$

$5,605,400$

If all the vouchers sold in $2025$ were presented for redemption in $2026,$ the redemption cost would be $$4,931,600.$ What amount

should Coronado report as a liability for voucher redemptions at December $31,2025?$

Liability for stamp redemptions at December $31,2025$

In packages of its products, Whispering Inc. includes coupons that may be presented at retall stores to obtain discounts on other

Whispering products. Retailers are reimbursed for the face amount of coupons redeemed plus $10\%$ of that amount for handling costs.

Whispering honors requests for coupon redemption by retailers up to $3$ months after the consumer expiration date. Whispering

estimates that $60\%$ of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Whispering during

$2025$ is as follows.

Consumer expiration date

Total face amount of coupons issued

Total payments to retallers as of $\frac{12}{31}\frac{?}{25}$

$12/31/25$

$$767,200$

$305,920$

What amount should Whispering report as a liabillty for unredeemed coupons at December $31,2025?$

liability for unredeemed coupons

Metlock Company sold $716,200$ boxes of pie mix under a new sales promotional program. Each box contains one coupon, which

subinuted with $$4\mathrm{.}70,$ entitles the customer to a baking pan. Metlock pays $$6\mathrm{.}70$ per pan and $$1\mathrm{.}20$ for handling and shipping. Metlock

estimates that $70\%$ of the coupons will be redeemed, even though only $251,700$ coupons had been processed during $2025.$ What

amount should Metlock report as a liability for unredeemed coupons at December $31,2025?$