Flint Corp. offers a set of building blocks to customers who send in 3 codes from Flint cereal, along with $1.00. Flint purchased 99,700 building block sets in 2020 for $2.50 each, and paid for them by cash. During 2020, Flint sold 997,000 boxes of cereal for $4 per box. Flint estimates that 10% of the sales amount received from customers relates to the building block sets to be awarded. Flint expects 30% of the codes to be sent in, and in 2020, 239,280 codes were redeemed.

Prepare all necessary journal entries for 2020 if Flint follows IFRS and prefers to use the revenue approach

Account Titles and Explanation

Debit

Credit

(To record cash purchase of premiums)

(To record cash sales)

(To record redemption of codes)

(To adjust unearned revenue)

Prepare all necessary journal entries for 2020 if Flint follows ASPE and prefers to use the expense approach.

Account Titles and Explanation	Debit	Credit
(To record cash purchase of premiums)
(To record cash sales)
(To record redemption of codes)
(To record premium expense)