A company offers a cash rebate on $1 on each $4 package of light bulbs sold during

Question:

A company offers a cash rebate on $1 on each $4 package of light bulbs sold during 2014. Historically, 10% of customers have mailed in the rebate form, During 2014, 3,000,000 packages of light bulbs are sold, and 140,000 rebates are claimed by customers. What is the accrual-based rebate expense and liability, respectively, shown on the 2014 dated December 31?
Select one:
a. $300,000; $160,000
b. $300,000; $140,000
c. $160,000; $160,000
d. $160,000; $140,000
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...