(L03) (Premium Entries) Edmonds Company includes 1 coupon in each box of soap powder that it packs, and 5 coupons are redeemable for a premium (a kitchen utensil). In 2017, Edmonds Company purchased 10,000 premiums at 50 cents each and sold 55,000 boxes of soap powder at $3.75 per box; 28,000 coupons were presented for redemption in 2017. It is esti- mated that 60% of the coupons will eventually be presented for redemption.

Instructions

Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2017.