(Answered) Question - beginning january 2015 tennis everyone gives its

Accounting

Question - Beginning January 2015, Tennis Everyone gives its customers coupons redeemable for a strings plus a dampener.

One coupon is issued for each dollar of sales. On the surrender of 100 coupons and $5.00 cash, the strings and dampener are given to the customer. It is estimated that 80% of the coupons will be presented for redemption. Sales for the first quarter ending March 31, 2015, were $700,000 and the coupons redeemed totaled 420,000. Tennis Everyone bought 20,000 strings at $6.00 each and 20,000 dampeners at $2.00 each. (These items are accounted for together in an account titled "Premium Inventory".)

Required: What accounts and dollar amounts would be reported on the Income Statement (not "Sales") and Balance Sheet (not "Cash") at March 31, 2015?

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