A record shop gives its customers coupons redeemable for a poster plus a record album. One coupon i issued for each dollar of sales. On the surrender of 100 coupons and $3.00 cash, the poster and alsum are given to the customer. It is estimated that 80% of the coupons will be presented for redemption. Sales for the first period were $600,000 and the coupons redeemed totaled 270,000. Sales for the second period were $720,000 and the coupons redeemed totaled 750,000. The record shop bought 20,000 posters at $1.50/poster and 20,000 albums at $2.00/album. Prepare the following entries for the two periods.
a) to record coupons redeemed and
b) to record the estimated liability. for both periods.