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#2 Current Liabilities The Brooklyn Bridge Candy Company offers a significant discount on the download of a movie from a large selection of movies for
#2 Current Liabilities The Brooklyn Bridge Candy Company offers a significant discount on the download of a movie from a large selection of movies for every five candy wrappers mailed in by customers together with $2.50. The candy bars are sold by the Company to distributors for $0.30. The purchase price of each download code is $2.25. In addition the estimated cost of distributing the codes is $.50 for each code. The results of the premium plan for the year 2025 and 2026 are as follows. Download Codes Purchased Candy Bars Sold Wrappers Redeemed 2025 wrappers expected to be redeemed in 2026 2025 wrappers expected to be redeemed in 2027 2026 2025 250,000 330,000 2,895,400 2,743,600 1,200,000 1,500,000 290,000 350,000 REQUIRED: a. Prepare the journal entries that should be made in 2025 and 2026 to record the transactions related to the premium plan of Brooklyn Bridge Candy Company. b. Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the bala
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