Cracker Corporation began a special promotion in July 2013 in an attempt to increase sales. A coupon was placed in each box of product. Customers could send in five coupons for a free prize. Each prize cost Cracker Corporation $2.00. Cracker's management estimated that 70% of the coupons would be redeemed. For the six months ended December 31, 2013, the following information is available: Required:
Record all necessary journal entries for the premium offer for 2013.

Question

Cracker Corporation began a special promotion in July 2013 in an attempt to increase sales. A coupon was placed in each box of product. Customers could send in five coupons for a free prize. Each prize cost Cracker Corporation $2.00. Cracker's management estimated that 70% of the coupons would be redeemed. For the six months ended December 31, 2013, the following information is available:  Required:
Record all necessary journal entries for the premium offer for 2013.

Quizplus · Accepted Answer

The Answer of Cracker Corporation began a special promotion in July 2013 in an attempt to increase sales. A coupon was placed in each box of product. Customers could send in five coupons for a free prize. Each prize cost Cracker Corporation $2.00. Cracker's management estimated that 70% of the coupons would be redeemed. For the six months ended December 31, 2013, the following information is available:  Required:
Record all necessary journal entries for the premium offer for 2013.

Cracker Corporation Began a Special Promotion in July 2013 in an Attempt