Question
Boston Beans launched a promotion in 2017. Customers can send in 4 UPC codes from cans of Boston Beans along with $6.00and receive a set
Boston Beans launched a promotion in 2017. Customers can send in 4 UPC codes from cans of Boston Beans along with $6.00and receive a set of barbecue utensils.Boston Beans buys the utensil sets from a wholesale company for $9.00.Boston Beans also incurs $1.50 in shipping costs for each utensil set shipped to a customer.The company estimates that 40% of UPC codes will be redeemed based on past promotions.During 2017, 2,000,000 cans of Boston Beans were sold.In addition 240,000 UPC codes were redeemed.Boston Beans recorded the 2017 redemptions as they occurred.
Calculate the amount of the necessary December 31, 2017 adjustment for the promotion and prepare the necessary journal entry.
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