In an effort to increase sales, Mills Company inaugurated a sales promotional campaign on June 30, 2013. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each...

In an effort to increase sales, Mills Company inaugurated a sales promotional campaign on June 30, 2013. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost P20 and five coupons must be presente customer to receive a premium. The entity estimated that only 60% of the coupons issued would be redeemed. For the six mon ended December 31, 2013, the following information is available: Packages of cereal sold Premiums purchased Coupons redeemed 160,000 12,000 40,000 What is the estimated liability for premiums on December 31, 2013?