This paper circulates around the core theme of What amount should Duke report as a liability for stamp redemptions at December 31, 2012? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 45. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Duke Trading Stamp Co. records stamp service revenue and provides for
the cost of redemptions in the year stamps are sold to licensees.
Duke’s past experience indicates that only 80% of the stamps sold to
licensees will be redeemed. Duke’s liability for stamp redemptions was
$7,500,000 at December 31, 2011. Additional information for 2012 is as
Stamp service revenue from stamps sold to licensees $5,000,000
Cost of redemptions $3,400,000
If all the stamps sold in 2012 were presented for redemption in 2013,
the redemption cost would be $2,500,000. What amount should Duke report
as a liability for stamp redemptions at December 31, 2012?