Multiple Choice
Nandina Inc.offers a cash rebate of Rs50 on each Rs200 package of biscuits sold during the last three months of 2011.Historically, 30% of the company's customers mail in the rebate form.During the last three months of 2011, 5,500,000 packages of biscuits are sold, and 1,050,000 Rs50 rebates are mailed to customers.What is the rebate expense and liability, respectively, shown on the company's 2011 financial statements?
A) Rs82,500,000; Rs30,000,000
B) Rs82,500,000; Rs82,500,000
C) Rs825,000; Rs525,000
D) Rs$8,250,000; Rs3,250,000
Correct Answer:
Verified
Correct Answer:
Verified
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