Problemmoon company includes 1 coupon in each box of soap, Ask an Expert

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Moon company includes 1 coupon in each box of soap powder that it packs, 10 coupons being redeemable for a premium consisting of a kitchen utensil. In 2014 Moon co. purchased 36,000 premiums at $1.00 each and sold 540,000 boxes of soap powder @$4.00 per box. Based on past experience it is estimated that 60% of the coupons will be redeemed. During 2014, 144,000 coupons were presented for redemption. during 2015, 29,000 premiums were purchased at $1.10. The company sold 1,200,000 boxes of soap at $4.00 and 495,000 coupons were presented for redeemption. Prepare all the entries that would be made relative to sales of soap powder and to the premium in both 2014 and 2015. Assume a FIFO inventory flow.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92759092

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