No Doubt Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, No Doubt Company purchased8,800premiums at80cents each and sold110,000boxes of soap powder at $3.30per box;44,000coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption.

Show the entries that would be made relative to sales of soap powder and to the premium plan in 2020.

Account Titles and Explanation Debit Credit

(a)

(b)

(To record the premium inventory)

(a)

(b)

(To record the sales)

(a)

(b)

(To record the expense associated with the sale)

(a)

(b)

(To record the premium liability)