Wynn Company offers a set of building blocks to customers who send in 3 UPC codes from Wynn cereal, along with 50 cents.
The blocks sets cost Wynn $1.10 each to purchase and 60 cents each to mail to customers.
During, 20XX, Wynn sold 1,200,000 boxes of cereal.
The company expects 30% of the UPC codes to be sent in. During 20XX, 120,000 UPC codes were redeemed.
Prepare Wynn’s Dec 31, 20XX, adjusting entry.