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Sheridan offers an MP$3$ download $($seven$-$single medley$)$ as a premium for every $6$ candy bar wrappers presented by customers

together with $$3\mathrm{.}00.$ The candy bars are sold by the company to distributors for $30!in$ each. The purchase price of each download code

to the company is $$2\mathrm{.}75.$ In addition, it costs $50!in$ to distribute each code. The results of the premium plan for the years $2025$ and $2026$

are as follows. $($All purchases and sales are for cash.$)$

$($a$)$

Prepare the journal entries that should be made in $2025$ and $2026$ to record the transactions related to the premium plan of

Sheridan. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are

automatically indented when amount is entered. Do not indent manually. Round answers to $0$ decimal places, e$.$g$.1,525.$ List all debit

entries before credit entries.$)($a$)$

Prepare the journal entries that should be made in $2025$ and $2026$ to record the transactions related to the premium plan of

Sheridan. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are

automatically indented when amount is entered. Do not indent manually. Round answers to $0$ decimal places, e$.$g$.1,525.$ List all debit

entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

${2025}_{?}$

$($To record purchase of MP$3$ downloads.$)$

$($To record the sale of candy bars.$)($To record the sale of candy bars.$)$

$($To record the redemption of wrappers, the receipt and the mailing

MP$3$ downloads.$)$

$($To record purchase of MP$3$ downloads.$)($To record purchase of MP$3$ downloads.$)$

$($To record the sale of candy bars.$)$

$($To record the redemption of wrappers, the receipt and the mailing

MP$3$ downloads.$)$

$($To record the estimated liability for the premium claims.$)($To record the redemption of wrappers, the receipt and the mailing

MP$3$ downloads.$)$

$($To record the estimated liability for the premium claims.$)$

eTextbook and Media

List of Accounts

Attempts: $0$ of $15$ used

$($b$)$Indicate the amounts for each accounts, and classifications of the items related to the premium plan that would appear on the

balance sheet and the income statement at the end of $2025$ and $2026.$

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