Answer Happy

In packages of its products, Glecie Inc. includes coupons that may be presented at retail stores to obtain discounts on other Glecie products. Retailers are reimbursed for the face amount of coupons redeemed plus 5% of that amount for handling costs. Glecie honours requests for coupon redemption by retailers up to four months after the consumer expiration date printed on the coupon. Glecie estimates that 70% of all coupons issued will eventually be redeemed. Information relating to coupons issued by Glecle during 2021 (the first year of the promotion) is as follows: Consumer expiration date 12/31/21 Total face amount of coupons issued $700,000 Total payments to retailers as at 12/31/21 $206,250 Instructions a. Present the journal entry that Glecie would prepare for the issue of coupons in 2021 What amount should Glecie report as a liability for unredeemed coupons at December 31, 2021? What amount of premium expense should Glecie report on its 2021 income statement? b. C.