Kane Candy Company offers a coffee mug as a premium for every ten $1 candy bar wrappers presented by customers together with $2. The purchase price of each mug to the company is $2.40; in addition it costs $1.60 to mail each mug. The results of the premium plan for the years 2017 and 2018 are as follows (assume all purchases and sales are for cash): Coffee mugs purchased Candy bars sold Wrappers redeemed 2017 wrappers expected to be redeemed in 2018 2018 wrappers expected to be redeemed in 2019 2017 2018 750,000 820,000 5,500,000 6,610,000 2,600,000 4,150,000 2,100,000 2,720,000 Your answer is partially correct. Try again. Prepare the general journal entries that should be made in 2017 and 2018 related to the above plan by Kane Candy. (Credit account titles are automatically indented wh the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2017 Inventory of Premiums 1800000 1800000 T Cash (To record purchase of coffee mugs) 2017 Cash 5500000 5500000 Sales Revenue (To record sale of candy bars) 2017 Cash 104000 Premium Expense 260000 364000 Inventory of Premiums (To record coffee mugs offered for wrappers redeemed) 2017 Premium Expense 210000 - 210000 T Premium Liability (To record liability against expected redemption of wrappers in 2018) 2018 Inventory of Premiums 1312000 Cash 1312000 (To record purchase of coffee mugs) 2018 Cash 6610000 T 6610000 T Sales Revenue (To record sale of candy bars) 2018 Cash 166000 TPremium Liability 415000 TPremium Expense 415000 x . 996000 Inventory of Premiums (To record coffee mugs offered for wrappers redeemed) 2018 TPremium Expense 272000 272000 Premium Liability (To record liability against expected redemption of wrappers in 2019) Your answer is partially correct. Try again. Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the Kane Candy Company balance sheet and i statement at the end of 2017 and 2018. Balance Sheet Account Name Class 2017 2018 TInventory of Premiums T Current Asset 1800000 1312000 Premium Liability Current Liability 210000 272000 Income Statement Account Name Class 2017 2018 Premium Expense Premium Expense 7 Operating Expense Operating Expense x= 470000 687000