TTD Corporation sold Sugar Frosted Cocoa Bombs, a children's breakfast cereal. As a promotion, TTD offered its customers a free $($b$)$

Prepare the journal entry to record the redemption by $9,600$ customers. $($Credit account titles are automatically indented when the

amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select $"$No Entry" for the

account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

music CD in exchange for four box tops, plus $$3\mathrm{.}20$ to cover postage and handling. The CD cost TTD $$3\mathrm{.}45,$ and postage costs to mail

the CDs out to customers were $$2\mathrm{.}50.$ TTD estimated that $80\%$ of its customers would redeem box tops. TTD purchased $11,800$ CDs

at the start of the promotion in November, $2023.155,000$ boxes of cereal were sold during November and December, $2023,$ and TTD$\text{'}$s

year$-$end was December $31.$ Prior to the end of the fiscal year, $9,600$ customers took advantage of the offer, which continued until

February, $2024.$ TTD follows ASPE and uses the expense approach to account for its premiums.

$($a$)$

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Prepare the journal entry to record the purchase of the promotional CDs for cash. $($Credit account titles are automatically indented

when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select $"$No Entry" for the

account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Credit

Inventory of Premiums