Martinez Corporation sold Sugar Frosted Cocoa Bombs, a children's breakfast cereal. As a promotion, Martinez offered its customers a free music CD in exchange for 4 boxtops, plus $3.00 to cover postage and handling. The CD cost Martinez $3.25, and postage costs to mail the CDs out to customers were $2.50. Martinez estimated that 70% of its customers would redeem boxtops. Martinez purchased 11,000 CDs at the start of the promotion in November, 2020. 120,000 boxes of cereal were sold during November and December, 2020, and Martinez's year-end was December 31. Prior to the end of the fiscal year, 7,700 customers took advantage of the offer, which continued until February, 2021. Martinez follows ASPE and uses the expense approach to account for its premiums. Your answer is partially correct. Prepare the journal entry to record the purchase of the promotional CDs. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Inventory of Premiums 63,250 Cash 63,250 eTextbook and Media Your answer is partially correct. Prepare the journal entry to record the redemption by 7,700 customers. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Cash 23.100 Premium Expense 21.175 Inventory of Premiums 44,275 eTextbook and Media Your answer is correct. Prepare the journal entry to record the year-end accrual entry for estimated premium expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Credit Debit Premium Expense 36,575 Estimated Liability for Premiums 36,575