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1. Bramble Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Brambles past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Brambles liability for stamp redemptions was $13,229,600 at December 31, 2019. Additional information for 2020 is as follows.

Stamp service revenue from stamps sold to licensees		$9,576,200
Cost of redemptions (stamps sold prior to 1/1/20)		6,296,500

If all the stamps sold in 2020 were presented for redemption in 2021, the redemption cost would be $5,575,000. What amount should Bramble report as a liability for stamp redemptions at December 31, 2020?

2. In packages of its products, Sunland Inc. includes coupons that may be presented at retail stores to obtain discounts on other Sunland products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Sunland honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Sunland estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Sunland during 2020 is as follows.

Consumer expiration date		12/31/20
Total face amount of coupons issued		$845,700
Total payments to retailers as of 12/31/20		297,660

What amount should Sunland report as a liability for unredeemed coupons at December 31, 2020?

3. Coronado Company sold 714,400 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.80, entitles the customer to a baking pan. Coronado pays $6.80 per pan and $1.30 for handling and shipping. Coronado estimates that 70% of the coupons will be redeemed, even though only 240,500 coupons had been processed during 2020. What amount should Coronado report as a liability for unredeemed coupons at December 31, 2020?

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