Question
(I ONLY NEED THE PARTS I GOT THEM WRONG IN RED, AND PLEASE FOLLOW THE FORMAT IN THE PICTURE !! THANK U) ____________________________________________________________________________________________ Yummy Cereal
(I ONLY NEED THE PARTS I GOT THEM WRONG IN RED, AND PLEASE FOLLOW THE FORMAT IN THE PICTURE!! THANK U) ____________________________________________________________________________________________
Yummy Cereal Company is offering one toy shovel set for 15 box tops of its cereal. Year-to-date sales have been off, and it is hoped that this offer will stimulate demand. Each shovel set costs the company $3. The following data are available for the last 3 months of 2019:
Month | Box of Cereal Sold | Shovel Sets Purchased by Company | Boxes Top Redeemed by Customers |
October | 21,000 | 890 | 12,000 |
November | 27,000 | 1,083 | 16,050 |
December | 33,000 | 1,695 | 20,745 |
It is estimated that only 70% of the box tops will be redeemed. The cereal sells for $2.80 per box. (Note: All sales are cash sales.)
Required: (I ONLY NEED THE PARTS I GOT THEM WRONG IN RED, AND PLEASE FOLLOW THE FORMAT IN THE PICTURE!! THANK U) | |
1. | Prepare journal entries for each month to record sales, shovel set purchases, and redemptions. |
2. | Assuming Yummy prepares monthly financial statements, indicate how the inventory of premiums and the estimated liability would be disclosed on Yummys ending balance sheets for October, November, and December. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started