Q1. (20 marks) Skylord Inc has been able to serve its customers coupons which can be redeemable for a poster plus a Linkin park CD. One coupon is issued for each dollar of sales. On presentation of 100 coupons and S 5.00 cash, the customer receives the poster and CD. It is estimated that 80% of the coupons will be presented for redemption. In addition, sales for Year One were $1,050,000, and 510,000 coupons were redeemed. Sales for Year Two were $ 1,260,000, and 1,275,000 coupons were redeemed. Modern bought 30,000 posters at $ 2.00 each, and 30,000 CDs at $ 5.50 each. Instructions Prepare the following entries for both years, assuming all the coupons expected to be redeemed from Year One were redeemed by the end of Year Two. a) To record coupons redeemed b) To record estimated liability Solution