Balance Sheet of General Products Inc. on Dec 31, 2015

Inventory 317,060

Inventory of Premiums @ $1.10 per premium 660

Liability for Premiums and Coupons 550

Prepare journal entry for the following for 2016

All sales are on credit and totaled $ 940,560.

Cost of goods sold are $780,650.

Included in the total sales of $940,560 are the sales of General Products brand 6000 soap powder boxes

General Products includes 1 coupon in every soap powder box.

Customers can redeem 4 coupons for 1 kitchen utensil.

Based on past 60% of the coupons are redeemed by customers.

During 2016 3,400 coupons were redeemed.

Purchase of premiums during 2016 totaled

1,000 premiums @ $1.10 each on credit.

Please prepare journal entries for 2016