Sun Shack Snack Corp. sells Trail mix for $$7\mathrm{.}50$ a box. By including a coupon for a pedometer, the company hopes to increase sales. If customers redeem the coupon, they can obtain a pedometer for $$3\mathrm{.}00.$ The pedometers will cost Sun Shack $$8\mathrm{.}00$ each. Sun Shack estimates that the promotion will be popular; they expect $3,000,000$ boxes of trail mix to be sold in Year $5$ and $10\%$ of the coupons to be redeemed during the promotional period. Of the total coupons expected to be redeemed, $70\%$ of the coupons will be redeemed in Year $6.$

Required:

Prepare journal entries in support of this year's $($Year $5)$ transactions for the following:

i$.$ Sales $($all cash$)$

ii$.$ Purchase of pedometers inventory $($for cash$)$

iii. Current year redemptions

iv$.$ Liability accrual at end of Year $5$

Prepare journal entries in support of this year's $($December $31,$ Year $5)$ transactions for the following:

i$.$ Sales $($all cash$)$

ii$.$ Purchase of pedometers inventory $($for cash$)$

iii. Current year redemptions

iv$.$ Liability accrual at end of Year $5$

General Journal Instructions

PAGE $1$

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT