lakeshore gelato distributors lgd began special promotion july 2012 attempt increase sales c

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Lakeshore Gelato Distributors (LGD) began a special promotion in July 2012 in an attempt to increase sales. A coupon was placed on top of each Gallon of Gelato. Customers could send in five coupons for a free mini ice cream scooper. Each scooper cost LGD $2.00. LGD’s management estimated that 70% of the coupons would be redeemed. For the six months ended December 31, 2012, the following information is available: LGD Sold 2,000,000 gallons of Gelato Purchased 240,000 scoopers Coupons Redeemed 560,000 Required: Record all necessary journal entries for the premium offer for 2012.

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