Novak Company offers a set of building blocks to customers who send in 3 UPC codes from Novak cereal, along with 40. The block sets cost Novak $1.00 each to purchase and 60 each to mail to customers. During 2020, Novak sold 1,080,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2020, 108,000 UPC codes were redeemed. Prepare Novaks December 31, 2020, adjusting entry.