Blue Spruce Corp. offers a set of building blocks to customers who send in 3 codes from Blue Spruce cereal, along with $ 1.00. Blue Spruce purchased 99,600 building block sets in 2020 for $ 2.50 each, and paid for them by cash. During 2020, Blue Spruce sold 996,000 boxes of cereal for $ 4 per box. Blue Spruce estimates that 10% of the sales amount received from customers relates to the building block sets to be awarded. Blue Spruce expects 30% of the codes to be sent in, and in 2020, 239,040 codes were redeemed.

Prepare all necessary journal entries for 2020 if Blue Spruce follows ASPE and prefers to use the expense approach