LO #1 - Question 2 - Premiums (12 Marks) Kollege Canada makes and sells a breakfast cereal called Super Wheat Crunch. As a promotion, Kollege offered its customers a free music CD in exchange for cereal boxtops, plus money to cover postage and handling. Kollegg has a December 31 year end. Kollegg follows ASPE and uses the expense approach to account for its premiums. Other information pertaining to the cereat p:omotion, which started on November 1, 2020 and ended on February 28, 2021, follows: Number of boxtops to be remitted by customers to receive a free CD Amount of cash to be remitted by each customer to receive a free CD Cost of each CD to Kollege Postage cost to mail each CD to customer Estimated percentage of boxtops that would be redeemed Number of CDs purchased by Kollegg on October 1, 2020 Number of boxes of cereal sold in November and December 2020 Selling price for each box of cereal Number of boxtops redeemed on or prior to December 31, 2020 3.49 3.60 2.65 65% 25,166 115,871 7 27,785 Required: Prepare all journal entries that should be made in 2020 related to the premium plan. Assume that all CDs are purchased with cash, and that cash is received immediately for all sales