Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 box-tops from Palmer Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 2012, the company sold 675,000 boxes of Frosted Flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. If the bowls cost Palmer Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2012?

Answer rating: 100% (QA)

Answer is 50000 Total Box tops sold 675000 Estimate of box tops to be sent in by customers ... View the full answer