Beginning January 2015, Tennis Everyone gives its customers coupons redeemable for a strings plus a dampener.

One coupon is issued for each dollar of sales. On the surrender of 100 coupons and $5.00 cash, the strings and

dampener are given to the customer. It is estimated that 80% of the coupons will be presented for redemption. Sales

for the first quarter ending March 31, 2015, were $700,000 and the coupons redeemed totaled 420,000. Tennis

Everyone bought 20,000 strings at $6.00 each and 20,000 dampeners at $2.00 each. (These items are accounted for

together in an account titled Premium Inventory.)

Required: What accounts and dollar amounts would be reported on the Income Statement (not Sales) and Balance

Sheet (not Cash) at March 31, 2015?

Account Name ($)

Income Statement: _______________________ ____________

Balance Sheet (Asset): _______________________ ____________

Balance Sheet (Liability): _______________________ ____________