Indiga Music Emponium carries a wide variely of musical instruments, sound reproduct on equapment. recorded music, and sheet music Indigo uses two sales promotion techriques$-$warranties and premikero$-$to attrik i customers

Musical instrments and sound equipment are soid with a $1$ year warranty for replicerrent of parts arab Laber The estimated wair fietty cost, based on past experience, is $1\%$ of sales.

The premium is offered on the rectorbed and sheet music. Customers recelve a coupon for each dollar spent onrecurded musit of sheet music. Customers miny exchange $200$ coupons and $$30$ for an Mi$3$ player. Indizo piys $$41$ tor each ployet and estimates that $70\%$ of the couporrs giveri ta custamers wil be redeemed.

Indigo's total sales for $2025$ were $$7,226,000$;$$6,016,000$ from musical instruments and sound rempratustion equipment and $$1\mathrm{.}210\mathrm{.}000$ from recorded music and sheot music. Replacement parts and iabor for warranty work tetaied $595\mathrm{.}500$ dising $20251$$$47,500$ of the work is related to pre $2025$ silesi A tatal of $6\mathrm{.}710$ players used in the premium program were purchased siazing the yese and there were $1,500,000$ coupans redeemed in $2025.$

The balances in the accounts related to waffantics and premiums on January $1,2025,$ were as shown below.

$\backslash$table$[[$Premium Imventory,$$38\mathrm{.}910$