Edmonds Company includes 1 coupon in each box of soap powder that it packs, and 5 coupons

Question:

Edmonds Company includes 1 in each box of soap powder that it packs, and 5 coupons are redeemable for a premium (a kitchen utensil). In 2014, Edmonds Company purchased 10,000 premiums at 50 cents each and sold 55,000 boxes of soap powder at $3.75 per box; 28,000 coupons were presented for redemption in 2014. It is estimated that 60% of the coupons will eventually be presented for redemption.

Instructions
Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2014.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...