Question

Can you help us with part b and part c? the remaining 2 journal entries

2.73/3.5 Question 2 View Policies Show Attempt History Current Attempt in Progress Martinez Corporation sold Sugar Frosted Cocoa Bombs, a children's breakfast cereal. As a promotion, Martinez offered its customers a free music CD in exchange for 4 boxtops, plus $3.00 to cover postage and handling. The CD cost Martinez $3.25, and postage costs to mail the CDs out to customers were $2.50. Martinez estimated that 70% of its customers would redeem boxtops. Martinez purchased 10,000 CDs at the start of the promotion in November, 2020.96,000 boxes of cereal were sold during November and December, 2020, and Martinez's year-end was December 31. Prior to the end of the fiscal year, 5,600 customers took advantage of the offer, which continued until February, 2021. Martinez follows ASPE and uses the expense approach to account for its premiums. Your answer is correct. Prepare the journal entry to record the purchase of the promotional CDs. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Inventory of Premiums Cash 32500 32500 eTextbook and Media Your answer is partially correct. Prepare the journal entry to record the redemption by 5,600 customers. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Cash Premium Expense Inventory of Premiums eTextbook and Media - Your answer is partially correct. Prepare the journal entry to record the year-end accrual entry for estimated premium expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Premium Expense Estimated Liability for Premiun

Answer 1

Martinez Corporation sold Sugar Frosted Cocoa Bombs
Martinez offers to customer a free music CD in exchange
4 boxtops + $ 3.00 to cover postage and handling cost
The CD cost $ 3.25 + postage cost to mail $ 2.50
Marinez purchased 10,000 CD start of Nov 2020
Martinez sold 96,000 boxes
Journal Entry
Details	Debit($)	Credit($)
Inventory	32,500
Cash		32,500
( 10,000*$3.25)
Advantage taken by 5600 customer
As per Question , 5600 customers took advantage
of the offer means
Free CD in exchange 4 boxtops + $ 3.00 to cover postage + Handling cost
Cash (5600 Customer * 3)	16,800
Premium Expenses	1,400
Inventory Premium ( 5600 customer *3.25)		18,200