contingent Liabilities and 5 Rayon recently undertook a sales campaign whereby customers can obtain free gifts, by presenting a coupon, which has been included in an advertisement in the national newspaper, on the purchase of specific electrical household appliances. The offer is valid for a limited time period from 1 January x6 until 31 July x6. Management is unsure as to how to treat this offer in the financial statements for the year ended 30 April x6. Advise the management.
