Jennifer Cakes places a coupon in each box of its product. Customers may send in five coupons

Question:

Jennifer Cakes places a in each box of its product. Customers may send in five coupons and $3, and the company will send them a recipe book. Sufficient books were purchased at a cost of $5 each. A total of 400,000 boxes of product were sold in 2014. It was estimated that 6% of the coupons would be redeemed. During 2016, 8,000 coupons were redeemed. Prepare all journal entries required by the information above
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...