Ayayai Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Ayayai Company purchased 8,600 premiums at 80 cents each and sold 106,000 boxes of soap powder at $3.20 per box; 43,300 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption.
Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020.

                                                       DR.            CR.

Inventory Premium                   $6,880

Cash                                                              $ 6,880

Cash                                          $ 339,200

Sales                                                              $ 339,200

Premium Expense                    $3,464

Inventory Premium                                       $3,464

Premium Expense                    $1,624

Premium Liability                                          $1,624

Explanation:

Inventory Premium = 8,600 x $0.80 = $6,880

Sales = 106,000 unit x $3.20 = $339,200

Premium Expense = (43,300/10) x $0.8 = $3,464

Premium Liability = (((106,000 x 60%) - 43,300) / 10) x $0.8 = $1,624

answer; measurable outcome;