Yummy Rice Cereal started a program at the beginning of 2021…
Yummy Rice Cereal started a program at the beginning of 2021 in which it would provide an all-star bowl in exchange for three proof-of-purchase box tops and $1 in cash. Yummy Rice estimates that 30% of box tops will be redeemed. The bowls cost Yummy Rice $2 each. In 2021, 5,000,000 boxes of cereal were sold. By year-end 900,000 box tops had been redeemed.Required:1. Calculate the coupon/promotion expense that Yummy Rice should recognize for the year ended December 31, 2021 and record the entry. 2. Show the entry Yummy would record when the 900,000 box-tops are redeemed.   3. After the redemption, what is the balance in the liability account related to the coupons?