Ivanhoe Music Shop gives its customers coupons redeemable for a poster plus a Bo Diddley CD....

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Ivanhoe Music Shop gives its customers coupons redeemable for a poster plus a Bo Diddley CD. One coupon is issued for each dollar of sales. On the surrender of 100 coupons and $6.00 cash, the poster and CD are given to the customer. It is estimated that 80% of the coupons will be presented for redemption. Sales for the first period were $700,000, and the coupons redeemed totaled 425,000. Sales for the second period were $880,000, and the coupons redeemed totaled 740,000. Ivanhoe Music Shop bought 20,000 posters at $3.0/poster and 20,000 CDs at $7.0/CD. Prepare the following entries for the two periods, assuming all the coupons expected to be redeemed from the first period were redeemed by the end of the second period. To record coupons redeemed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Period 1 Account Titles and Explanation Debit Credit Premium Expense Cash Inventory of Premiums Period 2 Account Titles and Explanation Debit Premium Liability Premium Expense Cashi Inventory of Premiums 17000 25500 4250 25350 44400 Credit 42500 74000 Ivanhoe Music Shop gives its customers coupons redeemable for a poster plus a Bo Diddley CD. One coupon is issued for each dollar of sales. On the surrender of 100 coupons and $6.00 cash, the poster and CD are given to the customer. It is estimated that 80% of the coupons will be presented for redemption. Sales for the first period were $700,000, and the coupons redeemed totaled 425,000. Sales for the second period were $880,000, and the coupons redeemed totaled 740,000. Ivanhoe Music Shop bought 20,000 posters at $3.0/poster and 20,000 CDs at $7.0/CD. Prepare the following entries for the two periods, assuming all the coupons expected to be redeemed from the first period were redeemed by the end of the second period. To record coupons redeemed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Period 1 Account Titles and Explanation Debit Credit Premium Expense Cash Inventory of Premiums Period 2 Account Titles and Explanation Debit Premium Liability Premium Expense Cashi Inventory of Premiums 17000 25500 4250 25350 44400 Credit 42500 74000