Marigold Corp. offers a set of building blocks to customers who send in 3 codes from Marigold cereal, along with $1.00. Marigold purchased 99,100 building block sets in 2020 for $2.50 each, and paid for them by cash. During 2020, Marigold sold 991,000 boxes of cereal for $4 per box. Marigold estimates that 10% of the sales amount received from customers relates to the building block sets to be awarded. Marigold expects 30% of the codes to be sent in, and in 2020, 237,840 codes were redeemed.

Prepare all necessary journal entries for 2020 if Marigold follows ASPE and prefers to use the expense approach.

(To record cash purchase of premiums)

(To record cash sales)

(To record redemption of codes)

(To record premium expense)

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