Question

Marigold Company offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers presented by customers together with $3.00. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.75. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2017 and 2018 are as follows. (All purchases and sales are for cash.) 2017 2018 MP3 codes purchased 315,000 415,800 Candy bars sold 2,636,300 2,480,500 Wrappers redeemed 1,512,000 1,890,000 2017 wrappers expected to be redeemed in 2018 365,400 2018 wrappers expected to be redeemed in 2019 441,000 Prepare the journal entries that should be made in 2017 and 2018 to record the transactions related to the premium plan of the Marigold Company. (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.) (To record the expense associated with the sale.) 2017 Journal Entry (To record the expense associated with the sale.) 2018 Journal Entry

Answer 1