1 (3 points) M includes one coupon in each bag of dog food it sells In exchange for eight coupons, M sends customers a leash The leashes cost M $3 each M estimates customers will redeem 45 percent of the coupons Data for 2014 and 2015 follows 2014 2015 Bags of dog food sold 500,000 600,000 Leashes purchased 18,000 22,000 Coupons redeemed 120,000 150,000 a What is Ms coupon leash premium expense for 2014 b What is Ms coupon leash premium liability at December 31, 2014 c What is Ms coupon leash premium liability at December 31, 2015

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Question: 1. (3 points) M includes one coupon in each bag of dog food it sells. In exchange for eight coupons, M sends customers a leash.

1. (3 points) M includes one coupon in each bag of dog food it sells. In exchange for eight coupons, M sends customers a leash. The leashes cost M $3 each. M estimates customers will redeem 45 percent of the coupons. Data for 2014 and 2015 follows:

	2014	2015
Bags of dog food sold	500,000	600,000
Leashes purchased	18,000	22,000
Coupons redeemed	120,000	150,000

a. What is Ms coupon/leash premium expense for 2014?

b. What is Ms coupon/leash premium liability at December 31, 2014?

c. What is Ms coupon/leash premium liability at December 31, 2015?

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