Reference no: EM133015587

Problem - Grouper Corp. offers its customers a 5-piece knife set in exchange for $12 and the purchase of its CC Cookware set. On January 15, 2020 the company purchased 2,710 units of the 5-piece knife sets at $15 each. It estimates that 70% of customers will participate in the promotion and that 5% of the amount received from customers relates to the awarded premiums. In 2020, the company sold 4,110 CC Cookware sets at a sales price of $118 resulting in sales revenue of $484,980. By the end of the year, 2,180 customers took advantage of the knife set promotion. Prepare all of journal entries needed to account for the transactions above assuming that Grouper follows ASPE and uses the expense approach for its promotions.