Multiple Choice Question 126 Crispy Frosted Flakes Company offers its customers a pottery cereal … 1 answer below »

 
   

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Multiple Choice Question 126

Crispy Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops from Crispy Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 2018, the company sold 800,000 boxes of Frosted Flakes and customers redeemed 352,000 boxtops receiving 88,000 bowls. If the bowls cost Crispy Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2018?

$96,000 $134,400 $64,000 $240,000