Flounder van Leeuwen operates a very busy roadside fruit and vegetable stand from May to October every year as part of his farming operation, which has a December 31 year end and uses ASPE. Each time a customer purchases over $12 of produce, Flounder gives the customer a special fruit-shaped sticker that can't be copied. If a customer collects 12 of these stickers, they can have $12 worth of produce for no charge. The stickers must be redeemed by June 30 of the following year. During the current year, 23.500 stickers were given out to customers. Flounder knows from experience that some stickers will never be cashed in, as the customer may not shop at his stand frequently enough to collect 12 stickers, or they get lost or forgotten. In previous years, 9% of stickers have been redeemed. During the current year, 7% of the stickers given out were redeemed. Flounder uses the expense approach to account for premiums and estimates that product costs are 60% of their selling prices. Determine the amount that should be reported as premium expense on the December 31 income statement and the amount of any liability at December 31. Premium Expense $ Estimated Liability for Premiums $ e Textbd and Media Prepare all the necessary journal entries to record the premium expense associated with the stickers and the related liability at year end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To record the cost of free product given in exchange when stickers are redeemed.) (To record the liability for unredeemed stickers.) e Textbook and Media Would the accounting of the premiums have been different if Flounder had followed IFRS? e Textbook and Media Save for Later Attempts: 0 of 5 used Submit