1. In an effort to increase sales, Mill company inaugurated a sales promotional campaign on June 30, 2020. The entity placed a coupon redeemable for a premium in each package of cereal sold. Each premium cost P20 and five coupons must be presented by a customer to receive a premium. The entity estimated that only 60% of the coupons issued will be redeemed for the six months ended December 31, 2020, the following information is available: Packages of cereal sold 160,000 Premiums purchased 12,000 Coupons redeemed 40,000 a. What amount should be reported as premium expense for 2020? b. What is the estimated liability for premium claims outstanding on December 31, 2020