[Answer] LeMay Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops from LeMay Frosted Flakes boxes and $1.00. The company estimates that 60% of the boxtops will be redeemed. In 2010 the company sold 500 000 boxes of Frosted Flakes and customers redeemed 220 000 boxtops receiving 55 000 bowls. If the bowls cost LeMay Company $2.50 each how much liability for outstanding premiums should be recorded at the end of 2010?a. $20 000b. $30 000c. $50 000d. $70 000

Answer: b
LeMay Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops from LeMay Frosted Flakes boxes and $1.00. The company estimates that 60% of the boxtops will be redeemed. In 2010 the company sold 500 000 boxes of F…

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