Multiple Choice
A company offers a cash rebate of $1 on each $4 package of light bulbs sold during 2014. Historically, 10% of customers mail in the rebate form. During 2014, 3,000,000 packages of light bulbs are sold, and 160,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2014 financial statements dated December 31?
A) $300,000; $300,000
B) $300,000; $140,000
C) $140,000; $140,000
D) $160,000; $140,000
Correct Answer:
Verified
Correct Answer:
Verified
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