Jennifer Cakes places a coupon in each box of its product. Customers may send in five coupons and $3, and the company will send them a recipe book. Sufficient books were purchased at a cost of $5 each. A total of 400,000 boxes of product were sold in 2016. It was estimated that 6% of the coupons would be redeemed. During 2016, 8,000 coupons were redeemed. Which entry should be made at December
31, 2016?
A) ?Premium Expense 6,400Estimated Premium Claims Outstanding 6,400?
B) ?Premium Expense 16,000Estimated Premium Claims Outstanding 16,000?
C) ?Premium Expense 6,400Inventory of Premiums 6,400?
D) ?Premium Expense 9,600Estimated Premium Claims Outstanding 9,600
A
You might also like to view...
Slate is planning to increase the sales price to $820. What impact will the increase in sales price have on the breakeven point in units? (Round your answer up to the nearest whole guitar.)
Slate was a professional classical guitar player until a motorcycle accident at left him disabled. After
long months of therapy, he hired an experienced luthier and started a small shop to make and sell
Spanish guitars. The guitars sell for $700 each, and the fixed monthly operating costs are as follows:
Slate's accountant told him about contribution margin ratios, and Slate understood clearly that for every
dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit.
A) It will stay the same.
B) It will go down from 12 to 8 units.
C) It will go up from 8 to 12 units.
D) It will go down from 10 to 8 units.
Organizations which use a responsive strategy of product/service development emphasize
speed over innovation. Indicate whether the statement is true or false
GMROI combines two measures: gross profit and return on investment
Indicate whether the statement is true or false
The ______ is an individual’s self-esteem which acts as a personal indicator that allows people to monitor inclusion or exclusion reactions toward them from their environment.
a. intergroup contact theory *b. psychological gauge c. social identity theory d. relative deprivation theory