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Question - Indigo Company offers a set of building blocks to customers who send in 3 UPC codes from Indigo cereal, along with 40¢. The block sets cost Indigo $0.90 each to purchase and 70¢ each to mail to customers. During 2020, Indigo sold 1,452,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2020, 145,200 UPC codes were redeemed. Prepare Indigo's December 31, 2020, adjusting entry.
How do prepare closing entries for these accounts ?Inventory 12/31/20$59,970 Cost of Goods Sold$223,818 Common Stock75,590
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