Premiums
Modern Music Gives Its Customers Coupons Which Are Redeemable $\stackrel{\text ~~~~~~~~{ Entry }}{ } {\text {~~~~~~~~~~~~~~~~ ~~~~~~~~Year One }}{\text { ~~~~~~~~~~~~~~~~Year Two }}$

Premiums
Modern Music gives its customers coupons which are redeemable for a poster plus a Hens and Chicks DVD. One coupon is issued for each dollar of sales. On presentation of 100 coupons and $ 5.00 cash, the customer receives the poster and DVD. Modern estimates that 80% of the coupons will be presented for redemption. Sales for Year One were $ 1,050,000, and 510,000 coupons were redeemed. Sales for Year Two were $ 1,260,000, and 1,275,000 coupons were redeemed. Modern bought 30,000 posters at $ 2.00 each, and 30,000 DVDs at $ 5.50 each.
Instructions
Prepare the following entries for both years, assuming all the coupons expected to be redeemed from Year One were redeemed by the end of Year Two.

$\stackrel{\text ~~~~~~~~{ Entry }}{ } {\text {~~~~~~~~~~~~~~~~ ~~~~~~~~Year One }}{\text { ~~~~~~~~~~~~~~~~Year Two }}$
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a) To record coupons redeemed
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b) To record estimated liability
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