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Dallas Corp. pays all employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly. Dallas accrues salaries only at yearend (12/31). Data relating to salaries earned in December are as follows:

-Last payroll was paid on December 26 for the two week period ended on that day.

-Overtime pay earned in the two-week period ended December 26 was $8,400.

-Remaining work days in December were the 29^th, 30^th, and 31^st, days on which there was no overtime.

-The recurring biweekly salaries total $150,000.

-Assume a 5-day workweek.

Prepare the adjusting entry required at December 31.

In packages of its product, Fan Inc, includes coupons that may be presented at retail stores to obtain discounts on other Fan products. Retailers are reimbursed for the face amount of coupons plus 10% of the face for handling costs. Fan honors requests for coupon redemption by retailers for up to three months after the consumer expiration date; Fan estimates that 55% of all coupons ultimately will be redeemed.

Information relating to coupons issued by Fan during the year is as follows:

-Customer expiration dateDecember 31 of the current year

-Total face amount of the coupons issued, $500,000

-Total payments made to retailers as of December 31, $110,000

Record the remaining liability at December 31. Of course, show your labelled work!

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