To stimulate the sales of its Alladin breakfast cereal, Larkspur Company places $1$ coupon in each box. $6$ coupons are redeemable for a premium consisting of a children's hand puppet. In $2026,$ the company purchases $50,500$ puppets at $$1\mathrm{.}60$ each and sells $600,000$ boxes of Alladin at $$3\mathrm{.}85$ a box. From its experience with other similar premium offers, the company estimates that $40\%$ of the coupons issued will be mailed back for redemption. During $2026,145,800$ coupons are presented for redemption.

Prepare the journal entries that should be recorded in $2026$ relative to the premium plan. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To record purchase of puppets$)$

$($To record the sales$)$