The Salty Chip Company Includes One Coupon Having No Expiration

question 125

Multiple Choice

The Salty Chip Company includes one coupon having no expiration date with its deluxe snack pack. Upon return of 10 coupons, Salty Chip will send a silver chip clip, which costs Salty Chip $1.50 each. Past experience indicates that 30% of coupons issued will be redeemed. Salty Chip began this promotion in 2015 and sold 1,000,000 deluxe snack packs. During 2015, 90,000 coupons were received and 9,000 chip clips were distributed to customers. The December 31, 2015 balance sheet should include a liability for coupons outstanding of

• A) $18,000.
• B) $180,000.
• C) $31,500.
• D) $50,000.

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Definitions:

Researching

The act of systematically investigating and studying materials and sources to establish facts and reach new conclusions.

Kohlberg

A theorist known for his theory of moral development, which suggests that people progress through stages of moral reasoning.

Moral Development

Moral development is the process by which individuals acquire and understand moral concepts, ethical principles, and values, guiding their behavior across the lifespan.

Heinz

Heinz may refer to a brand name commonly associated with food products, particularly known for ketchup, or it could refer to the ethical dilemma in Kohlberg's moral development theory involving a man named Heinz.