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Forever Clean (FV) is pursuing its annual plan to increase its sales. The company places one coupon in each bottle of 4 kilograms detergent. 10

Forever Clean (FV) is pursuing its annual plan to increase its sales. The company places one coupon in each bottle of 4 kilograms detergent. 10 coupons need to be collected to redeem a premium of a bag. In 2019, FV purchases 50,000 bags at RM20.00 each and sells 500,000 bottles of 4 kilograms detergent. The 4 kilograms detergent is sold at a price of RM25.00 each. Based on its experience, FV estimates that 45% of the coupons issued will be mailed back for redemption. During that year, 135,000 coupons are presented for redemption.

REQUIRED: Prepare the journal entries that should be recorded in 2019. (Show your calculations)

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