Albertson Corporation began a special promotion in July 2018 in an attempt to increase sales. A coupon was provided at various grocery stores upon checkout. Customers could send in four coupons to receive $2.80. Albertson's management estimated that 80% of the coupons would be redeemed. For the six months ended December 31, 2018, the following information is available:

Coupons distributed	2,500,000
Coupons redeemed	565,000

Required:
What is the estimated liability associated with the coupons at December 31, 2018?

Answer rating: 100% (QA)

Answer CALCULATION OF THE ESTIMATED LIABILITY OF COUPONS AT THE DECEMB... View the full answer