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1. Sandhill Starmp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Sandhills past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Sandhills liability for stamp redemptions was $13,229,600 at December 31, 2016. Additional information for 2017 is as follows. Stamp service revenue from stamps sold to licensees Cost of redemptions (stamps sold prior to 1/1/17) 9,576,200 If all the stamps sold in 2017 were presented for redemption in 2018, the redemption cost would be $5,575,000. What amount should Sandhill report as a liability for stamp redemptions at December 31, 2017? Liability for stamp redemptions at December 31, 2017 2. In packages of its products, Teal Inc. includes coupons that may be presented at retail stores to obtain discounts on other Teal products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount or handling costs. Teal honors requests for coupon redemption by re a ers up to 3 months ater the consumer expiration date ea estimates at % of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Teal during 2017 is as follows. Consumer expiration date Total face amount of coupons issuec Total payments to retailers as of 12/31/17 12/31/17 $845,700 297,660 What amount should Teal report as a liability for unredeemed coupons at December 31, 2017? ability for unredeemed couponsplease assist with these two

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