3. Cascade Company manufactures a special laundry soap. A towel is offered as a premium to customers who send in two proof-of-purchase seals from the soap boxes and a remittance of P20. Distribution cost is P5 per towel. Data for the premium offer are. 2020 2021 Soap sales 2,500,000 3,125,000 Towel purchases, P100 per towel 175,000 200,000 Number of towels distributed as premium 1,000 1,800 Number of towels expected to be distributed in subsequent period 600 800 Required: 1. Prepare journal entries for 2020 and 2021. 2. Statement classification of the account balances pertaining to the premium plan.