A Company Offers a Cash Rebate of $1 on Each

question 35

Multiple Choice

A company offers a cash rebate of $1 on each $4 package of batteries sold during 2010.Historically, 10% of customers mail in the rebate form.During 2010, 6,000,000 packages of batteries are sold, and 210,000 $1 rebates are mailed to customers.What is the rebate expense and liability, respectively, shown on the 2010 financial statements dated December 31?

• A)$600,000; $600,000
• B)$600,000; $390,000
• C)$390,000; $390,000
• D)$210,000; $390,000

Appreciate the importance of diversity and across-cultures competencies in fostering organizational strength and respect for individual uniqueness.

Develop communication skills critical for effective leadership and performance in diverse and global organizational environments.

Learn strategies for successful career advancement including networking, skill development, and creating opportunities within and outside organizations.

Understand the role of self-competency in personal and professional development.

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Definitions:

Drawer's Account

Refers to the account from which a check is drawn; the account belongs to the drawer (the person who writes the check).

Payee

A payee is a person or organization to whom money is paid or is to be paid.

Check

A written order instructing a bank to pay a specified amount of money from the writer's account to the person or entity in whose name the check has been issued.

Certificate Of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank.