Answer:
b. $100,000
Explanation:
Because the company estimates that 60% of the boxtops will be redeemed and the actual sold boxes was 1,350,000; the the estimated boxtops to be returned is 810,000 (= 60% * 1,350,000)
In 2018, customers redeemed 660,000 boxtops, then estimated of boxtops not redeemed is 150,000 boxtops
As the campaign regulated, 3 boxtops is received back 1 bowl, the company will have to redeem 50,000 bowl for 150,000 boxtops (50,000 = 150,000/3)
For each bowl, the company can receive $1 back from customer and cost $3, so the net cost is $2 (= $3-$1)
The liability for outstanding premiums should be recorded at the end of 2018 is $100,000 (=$2 x 50,000)
