intermediate accounting

The Chittenango Coffee Company sold 1,000,000 cups of coffee for $3.00 each during 2017. The company runs a promotion where customers get a free travel mug for every 20 cups of coffee they buy (this is tracked via a coffee card.) These mugs cost Chittenango $4 apiece and the company purchased 40,000 travel mugs in advance of starting this promotion. The company estimates that 60 percent of all coffee cards will be redeemed for free travel mugs. Record the journal entries for the sale of coffee, the purchase of the travel mugs to be used as premiums, the actual distribution of 20,000 travel mugs during 2017, and the accrued liability 2 for premiums expected to be redeemed in the future. The company estimates that 60 percent of all coffee cards will be redeemed for free travel 22 mugs. Record the accrued liability for estimated premiums to be redeemed during 2018. \begin{tabular}{|l|l|l|l|} \hline 23 & & & \\ \hline 24 & & & \\ \hline 25 & & & \\ \hline 26 & & & \\ \hline 27 & Part Five & \\ \hline \end{tabular} During January 2018, customers purchased enough coffee to earn another 2,000 free travel 28 mugs. Record the journal entry for the distribution of this premium inventory. 2930313233