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chapter 13 contingent liability premiums. farley music shop gives its customers coupons redeemables for a poster plus a dixie chicks CD.one coupon is...

chapter 13 contingent liability
premiums.
farley music shop gives its customers coupons redeemables for a poster plus a dixie chicks CD.one coupon is issued for each dollar of sales.on the surrender of 100 coupons and $5.00 cash,the poster and cd are given to the customer.it is estimated that 80% of the coupons will be presented for redemption.sales for the first period were $700,000 and the coupons redeemed totaled 340,000.sales for the second period werw 840,000 and the coupons redeemed totaled 850000.farley music shop bought 20,000 poster at $2.00/poster and 20,000 CDs at $6.00/CD
instructions:prepare the necessary journal entries for the two periods,assuming all the coupons expected to be redeemed from the first period were redeemed by the end of the second period.

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