Houston Cereal Inc offers its customers a pottery cereal bowl if they send in 3...
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Houston Cereal Inc offers its customers a pottery cereal bowl if they send in 3 boxtops. The company estimates that 65% of the boxtops will be redeemed. In 2017, the company sold 600,000 boxes of Frosted Flakes for $5.00 each. The company purchased 140,000 cereal bowls and customers redeemed 330,000 boxtops during the year. The bowls cost the Company $2 each.
Instructions: Prepare all the journal entries related to the sales and premium transactions in 2017.
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