Buffalo Company offers a set of building blocks to customers who send in 3 UPC codes from Buffalo cereal, along with 40¢. The block sets cost Buffalo $1.10 each to purchase and 70¢ each to mail to customers. During 2020, Buffalo sold 1,152,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2020, 115,200 UPC codes were redeemed. Prepare Buffalo's December 31, 2020, adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Premium Expense Premium Liability Debit Credit
Buffalo Company offers a set of building blocks to customers who send in 3 UPC codes from Buffalo cereal, along with 40¢. The block sets cost Buffalo $1.10 each to purchase and 70¢ each to mail to customers. During 2020, Buffalo sold 1,152,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2020, 115,200 UPC codes were redeemed. Prepare Buffalo's December 31, 2020, adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Premium Expense Premium Liability Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
QC 15.
Transcribed Image Text:Buffalo Company offers a set of building blocks to customers who send in 3 UPC codes from Buffalo cereal, along with 40¢. The block
sets cost Buffalo $1.10 each to purchase and 70¢ each to mail to customers. During 2020, Buffalo sold 1,152,000 boxes of cereal. The
company expects 30% of the UPC codes to be sent in. During 2020, 115,200 UPC codes were redeemed. Prepare Buffalo's December
31, 2020, adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Premium Expense
Premium Liability
Debit
Credit
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