DE11-5 The chapter opening story describes the airlines' frequent-flier programs. Suppose passengers fly 1,000,000 miles on American Airlines and the AAdvantage frequent-flier program costs American $.0015 per mile. During the next six months, AAdvantage cus- tomers use 200,000 of the miles for free trips on American Airlines. 1. Using American Airlines' actual account titles (see Exhibit 11-11, journalize American's

(a) accrual of Promotion Expense and Air Traffic Liability and

(b) the provision of free trans- portation for the AAdvantage customers (credit Cash). Explanations are not required. 2. Post to the Air Traffic Liability T-account. How much does American Airlines owe the AAdvantage customers after the preceding transactions?