Sweet Dates Company offers a premium to its customers—a glassbowl (cost to Sweet Dates is $0.90) upon return of 40 coupons. Twocoupons are placed in each box of dates sold. The companyestimates, on the basis of past experience, that only 70% of thecoupons will ever be redeemed. During 2016, 10 million boxes ofdates are sold, for cash, at $0.30 each. Eight million coupons areredeemed during 2016. Sweet Dates purchased 360,000 glass bowls forthe plan on January 1, 2016.

1.	Prepare the journal entries related to the sale of dates andthe premium plan in 2016.
2.	Show how the preceding items would be reported on the December31, 2016, balance sheet.

q2

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.

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.