Use the following information for questions
Kent Co.includes one coupon in each bag of dog food it sells.In return for eight coupons, customers receive a leash.The leashes cost Kent $2.00 each.Kent estimates that 40 percent of the coupons will be redeemed.Data for 2006 and 2007 are as follows: $\begin{array}{lrr}&2006&2007\\hline
\text { Bags of dog food sold } & 500,000 & 600,000 \
\text { Leashes purchased } & 18,000 & 22,000 \
\text { Coupons redeemed } & 120,000 & 150,000
\end{array}$
-The estimated liability for premiums at December 31, 2006 is
A)$7,500.
B)$10,000.
C)$17,500.
D)$20,000.

Question

Use the following information for questions 
Kent Co.includes one coupon in each bag of dog food it sells.In return for eight coupons, customers receive a leash.The leashes cost Kent $2.00 each.Kent estimates that 40 percent of the coupons will be redeemed.Data for 2006 and 2007 are as follows: $\begin{array}{lrr}&2006&2007\\hline
\text { Bags of dog food sold } & 500,000 & 600,000 \
\text { Leashes purchased } & 18,000 & 22,000 \
\text { Coupons redeemed } & 120,000 & 150,000
\end{array}$
-The estimated liability for premiums at December 31, 2006 is
A)$7,500.
B)$10,000.
C)$17,500.
D)$20,000.

Quizplus · Accepted Answer

The Answer of Use the following information for questions 
Kent Co.includes one coupon in each bag of dog food it sells.In return for eight coupons, customers receive a leash.The leashes cost Kent $2.00 each.Kent estimates that 40 percent of the coupons will be redeemed.Data for 2006 and 2007 are as follows: $\begin{array}{lrr}&2006&2007\\hline
\text { Bags of dog food sold } & 500,000 & 600,000 \
\text { Leashes purchased } & 18,000 & 22,000 \
\text { Coupons redeemed } & 120,000 & 150,000
\end{array}$
-The estimated liability for premiums at December 31, 2006 is
A)$7,500.
B)$10,000.
C)$17,500.
D)$20,000.

Use the Following Information for Questions Kent Co -The Estimated Liability for Premiums at December 31, 2006 Is

Use the Following Information for Questions
Kent Co -The Estimated Liability for Premiums at December 31, 2006 Is