Guinea Company sold 500,000 packs of dog food during the pet fair event in SM City Bacolod. Each pack contains one coupon, which if submitted with P30, entitles the customer to a dog tag. The Company pays P60 per dog tag and P5 for handling and shipping. The Company also estimated that 70% of the coupons will be redeemed, even though only 250,000 coupons had been processed during 2022.

1. Q1 – What is the total redeemable coupons?
   Q2 – How much should the Company report as a liability for unredeemed coupons at year-end?
2. Q3 – What is the value of the coupon inventory at year-end?

Answer rating: 100% (QA)

Q1 What is the total redeemable coupons The total redeemable coupons is 500000 packs 70 350000 co... View the full answer