It is early in February 2021, and you are conducting the audit of OT.'s 2020 financial statements. Through discussion with OT's chief financial officer, you learn of matters that have not yet been incorporated into the 2020 financial statements. In July 2020, 49 passengers on board OT Airlines Flight 007 were seriously injured when the plane missed the runway on final approach. In January 2021, the injured passengers launched a class action lawsuit against Out Of This World seeking damages of $5 million. OT's internal investigation of the incident determined that the pilot was intoxicated during the flight. The company's solicitors suggest that if the matter goes to court, OT will be found liable and ordered to pay the $5 million. In an attempt to reduce its loss, OT's solicitors made a settlement offer of $3 million to the plaintiffs. The litigants' attorney has not provided a formal response but has indicated that the offer is being seriously considered. OT's lawyers estimate that there is an 80% probability the plaintiffs will accept the offer. During 2020, OT began a customer loyalty program. For each aeronautical mile that a passenger travels on a paid flight, the passenger accrues one flight mile. Passengers can redeem accrued flight miles for free air travel. Earned miles do not expire. OT's analysis of its competitors' programs suggests an average redemption rate of 65%. In 2020, OT awarded 35,000,000 flight miles, 2,275,000 of which were redeemed. Management estimates the performance obligation pertaining to the flight miles is $470,000. Required Prepare the journal entries to record the required adjustments for the above events, assuming that out of this world reports its financial results in accordance with IFRS. Begin preparing the entry to provide for the expected liability settlement. (Record debits first, then credits. Leave any unused cells blank. Explanations are not required.) Date 2020 Accounts Debit Credit Next, prepare the entry to allocate a portion of the ticket sales proceeds to the award program. (Record debits first, then credits. Leave any unused cells blank. Explanations are not required.) Date 2020 Accounts Debit Credit Now prepare the entry to recognize award point revenue in 2020. (Record debits first, then credits. Leave any unused cells blank. Explanations are not required.) Date 2020 Accounts Debit Credit