p5 Transcribed Image Text: Siomai Company inaugurated a sales promotional campaign on September 01, 2020 in its desire
to improve sales. Siomai placed a coupon redeemable for a premium in each ream of bond
papers sold. Each premium costs P20 and five coupons must be presented by a customer to
receive a premium. It is estimated that only 70% of the coupons issued will be redeemed. For the
four months ended December 31, 2020, there were 400,000 reams sold. Siomai purchased 30,000
premiums for the year and 100,000 coupons were redeemed. The company treated the premium
as a selling expense.
How much is the estimated liability for premium claims outstanding on December 31, 2020? *
O P720,000
O P1,020,000
O P1,800,000
O P3,600,000
O P-0-
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