Yummy Rice Cereal offers an all-star bowl in exchange for three return box tops. Yummy Rice
estimates that 30% will be redeemed. The bowls cost Yummy Rice $1 each. In 2013, 5,000,000 boxes
of cereal were sold. By year-end 900,000 box tops had been redeemed.
Required:
Calculate the liability that Yummy Rice should report at December 31, 2013.