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A Cookie Company Includes One Premium Coupon in Every Cookie

Question 122

Multiple Choice

A cookie company includes one premium coupon in every cookie package. Upon returning 10 such coupons to the company, the customer will be sent a free cookie jar. In a recent year, the company sold 200,000 packages of cookies for $1 per package. It is estimated that 20% of the coupons will be redeemed. If the cookie jars cost the company $3 each, what amount of liability should be recorded?


A) $ 6,000
B) $ 12,000
C) $120,000
D) $200,000

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