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On March 18, Kudos Corporation sells snack products to a retail warehouse club chain for $25,000 (cost of $15,000). The contract includes an obligation for the warehouse club to run certain advertising campaigns for the snack products in exchange for $2,000 cash from Kudos Corporation on the contract date. The comparable price for this type of advertising campaign to be conducted by a third party is $2,000. Required a. Prepare Kudos journal entry on March 18 for the product sale, the cost of the product sale, and the purchase of advertising services. b. Assume instead that Kudos sold $25,000 of product to a customer (cost of $15,000) and has agreed to pay the customer $500 in slotting fees for preferential product placement in displays. Kudos will pay the $500 fee on April 30. Prepare Kudos journal entry on March 18 for the product sale and the cost of the product sale, and then on April 30 for the payment of the slotting fee. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). a. Account Name Dr. Cr. Mar. 18 Cash 25,000 0 Answer N/A 0 0 Answer Sales Revenue 0 25,000 Answer To record the sale of product Mar. 18 Cost of Goods Sold 15,000 0 Answer Inventory 0 15,000 Answer To record the cost of sale of product Mar. 18 Advertising Expense 2,000 0 Answer Cash 0 2,000 Answer To record the payment for advertising b. Account Name Dr. Cr. Mar. 18 Cash 25,000 0 Answer N/A 0 0 Answer Deferred Revenue 0 25,000 Answer To record the sale of product Mar. 18 Cost of Goods Sold 15,000 0 Answer Inventory 0 15,000 Answer To record the cost of sale of product Apr. 30 Consideration Payable 500 0 Answer Cash 0 500 Answer To record the payment for advertising

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