Cullumber Company offers a set of building blocks to customers who send in 3 UPC codes from Cullumber cereal, along with 50¢. The block sets cost Cullumber $1.30 each to purchase and 70¢ each to mail to customers. During 2025, Cullumber sold 1,536,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2025, 153,600 UPC codes were redeemed. Prepare Cullumber's December 31, 2025, 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. List all debit entries before credit entries.) Account Titles and Explanation Premium Expense Premium Liability Debit 307,200 Credit 307,200
Cullumber Company offers a set of building blocks to customers who send in 3 UPC codes from Cullumber cereal, along with 50¢. The block sets cost Cullumber $1.30 each to purchase and 70¢ each to mail to customers. During 2025, Cullumber sold 1,536,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 2025, 153,600 UPC codes were redeemed. Prepare Cullumber's December 31, 2025, 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. List all debit entries before credit entries.) Account Titles and Explanation Premium Expense Premium Liability Debit 307,200 Credit 307,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Cullumber Company offers a set of building blocks to customers who send in 3 UPC codes from Cullumber cereal, along with 50¢. The
block sets cost Cullumber $1.30 each to purchase and 70¢ each to mail to customers. During 2025, Cullumber sold 1,536,000 boxes of
cereal. The company expects 30% of the UPC codes to be sent in. During 2025, 153,600 UPC codes were redeemed. Prepare
Cullumber's December 31, 2025, 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. List all debit entries before credit entries.)
Account Titles and Explanation
Premium Expense
Premium Liability
Debit
307,200
Credit
307,200
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