On January 1, 2017, Fro-Yo Inc. began offering customers a cash rebate of $5.00 if the...

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On January 1, 2017, Fro-Yo Inc. began offering customers a cashrebate of $5.00 if the customer mails in 10 proof-of-purchaselabels from its frozen yogurt containers. Based on historicalexperience, the company estimates that 20% of the labels will beredeemed. During 2017, the company sold 5,000,000 frozen yogurtcontainers at $1, cash, per container. From these sales, 800,000labels were redeemed in 2017, 150,000 labels were redeemed in 2018,and the remaining labels were never redeemed.
Required:
1. Prepare the journal entries related to the sale of frozenyogurt and the cash rebate offer for 2017 and 2018.
2. Next Level Assume that 300,000 labels were redeemed in 2018.Prepare the journal entries related to the cash rebate offer for2018.
On December 1, 2016, Insto Photo Company purchased merchandise,invoice price $23,000, and issued a 6%, 120-day note to RingoChemicals Company. Insto uses the calendar year as its fiscal yearand uses the perpetual inventory system.
Prepare journal entries on Insto’s books to record thepreceding information, including the adjusting entry at the end ofthe year and payment of the note at maturity.


	Prepare journal entries on Insto’s books to record thepreceding information, including the adjusting entry at the end ofthe year and payment of the note at maturity.

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Solution Question 1 1 In both conditions Account titles and explanations Debit Credit Promotional expenses 5000000 20 5 10 500000 Promotional expenses payable 500000 To record the arrangement of special See Answer

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1.	Prepare the journal entries related to the sale of frozenyogurt and the cash rebate offer for 2017 and 2018.
2.	Next Level Assume that 300,000 labels were redeemed in 2018.Prepare the journal entries related to the cash rebate offer for2018.