Answer:
$198,100
Explanation:
Yummy rice estimates that 25 percent of the coupons will be redeemed
If 5,960,00 coupons were distributed 25 percent of these coupons which are
5,960,000 x 0.25 = 1,490,000 coupons should have been redeemed. However by the year end 924,000 coupons were redeemed, which means that 566,000 coupons are still outstanding and will be redeemed in future
1,490,000 - 924,000 = 566,000
One bowl is provided is provided in exchange for 4 coupons, if there are 566,000 coupons outstanding, the bowls to be claimed should be 141,500
566,000/4 = 141,500
Since each bowl is worth $1.4, the liability to be reported should be
141,500 x 1.4 = $198,100
