Reference no: EM132578308

Question -

Part 1 - Albertson Corporation began a special promotion in July 2018 in an attempt to increase sales. A coupon was provided at various grocery stores upon checkout. Customers could send in five coupons to receive $3.00. Albertson's management estimated that 80% of the coupons would be redeemed. For the six months ended December 31, 2018, the following information is available:

Coupons distributed 2,000,000

Coupons redeemed 560,000

What is the estimated liability associated with the coupons at December 31, 2018? Show all work.

Part 2 - Hanatel Corporation made credit sales of $200,000 (before sales tax) which are subject to 6% sales tax.

The corporation also made cash sales which totaled $22,790 including the 6% sales tax.

(a) Prepare the entry to record Hanatel's credit sales.

(b) Prepare the entry to record Hanatel's cash sales.