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1. Sweet dates company offers a premium to its customers, a glass bowl(cost to sweet dates is $0.90) upon return of 40 coupons. Two coupons are placed in each box of dates sold. The company estimates, on the basis of past experience, that only 70% of the coupons will ever be redeemed. During 2013, ten million boxes of dates were sold at $0.30 each. Eight million coupons are redeemed during 2013. Sweet dates purchased 360,000 glass bowls for the plan in 2013.
A. prepare the journal entries related to the sale of dates and premium plan in 2013.
B. Show how the proceeding items would be reported on the December 31, 2013, balance sheet.
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