Premium Obligation The Sweet Dates Company offers to its customers a premium—a glass bowl (cost to Sweet Dates, $0.90) upon return of 40 coupons. Two coupons are placed in each box of dates sold. The company estimates, on the basis of past experience, that only 70% of the coupons will ever be redeemed. During 2007, 10 million boxes of dates are sold at $0.30 each. Eight million coupons are redeemed during 2007. Sweet Dates purchased 360,000 glass bowls for the plan in 2007.

Required
1. Prepare the journal entries related to the sales of dates and the premium plan in 2007.
2. Show how the preceding items would be reported on the December 31, 2007 balance sheet.