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

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Definitions:

Well-child Examinations

Regular medical check-ups for children to assess their growth, development, and health, and to administer vaccinations.

Toddlers

Young children, typically aged between one and three years old, who are just beginning to walk.

Well-child Examination

A check-up where a healthcare provider assesses the health, growth, and development of a child to prevent health problems.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for diagnosis since it is closely related to the force and rate of the heartbeat and the diameter and elasticity of the arterial walls.