In December Year 4, Mill Co. began including one coupon in each package of candy that it sells and offering a toy in exchange for $.30 and one coupon. The toys cost Mill $.80 each. Eventually, 70% of the coupons will be redeemed. During December, Mill sold 100,000 packages of candy and 15,000 coupons were redeemed. In its Year 4 income statement, what amount should Mill report as Premium Expense?

$35,000

Explanation:

Sine Mill expects that 70% of the coupons will be redeemed, their premium expense should equal 70% x 100,000 packages x ($0.80 - $0.30) = $35,000

the journal entry to record the issuing of the discount coupons should be:

Dr Premium (or toy coupons, or marketing) expense 35,000

    Cr Toy coupons liability 35,000

Since 15,000 were redeemed in December, the adjusting entry should be:

December 31, year 4

Dr Toy coupons liability 7,500

    Cr Toys inventory 7,500

answer; interviews;

according to the song of roland, the characteristics of an ideal knight are: loyalty to the king, skilled warriors and horseman, valiant, bold, courageous, strong and proud in battle. they should be determined to fulfil their duties and willing to die to make their people safe.