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The following are three independent situations. Sheridan Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are

The following are three independent situations.
Sheridan Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Sheridan's past experience indicates that only 60% of the stamps sold to licensees will be redeemed. Sheridan's liability for stamp redemptions was $6,050,000 at December 31,2024. Additional information for 2025 is as follows:
Stamp service revenue from stamps sold to licensees
$14,280,000
Cost of redemptions (stamps sold prior to 11?25)
2,860,000
If all the stamps sold in 2025 were presented for redemption in 2026, the redemption cost would be $9,500,000. What amount should Sheridan report as a liability for stamp redemptions at December 31,2025?
Liability for stamp redemptions at December 31,2025
$
2. In packages of its products, Pharoah Corp. includes coupons that may be presented at retail stores to obtain discounts on other Pharoah products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Pharoah honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Pharoah estimates that 30% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Pharoah during 2025 is as follows:
Consumer expiration date
1231?25
Total face amount of coupons issued
$478,000
Total payments to retailers as of 1231?25
116,000
What amount should Pharoah report as a liability for unredeemed coupons at December 31,2025?
Liability for unredeemed coupons
$
3. Oriole Company sold 920,000 boxes of cereal under a new sales promotional program. Each box contains one coupon, which submitted with $2.00, entitles the customer to a stuffed animal. Oriole pays $3.00 per stuffed animal and $1.20 for handling and shipping. Oriole estimates that 40% of the coupons will be redeemed, even though only 101,700 coupons had been processed during 2025. What amount should Oriole report as a liability for unredeemed coupons at December 31,2025?
Liability for unredeemed coupons at December 31,2025
$
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