Moleski Limited, a private company following ASPE, includes one coupon in each box of soap powder that it produces, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Moleski purchased 8,800 premiums at $0.90 each and sold 120,000 boxes of soap powder at $3.30 per box. In total, 44,000 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption. Moleski uses the expense approach to account for premiums. 

Instructions 

a. Prepare all the entries that would be made for sales of soap powder and for the premium plan in 2020. Ignore any cost of goods sold entry. Round amounts to the nearest dollar. 

b. What amounts relative to soap powder sales and premiums would be shown on Moleski's financial statements for 2020? 

c. What method did Moleski follow? Would the same method apply if Moleski had followed IFRS?