P139 (L03,4) (Premium Entries and Financial Statement Presentation} Sycamore Candy Company offers an MPB download {seven-single medley) as a premium for every five candy bar wrappers presented by customers together with $2.50. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.25. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2017 and 2018 are as follows. (All purchases and sales are for cash.) 2017 2018 W3 codes purchased 250,000 330,000 Candy bars sold 2,395,400 2,743,600 Wrappers redeemed 1,200,000 1,500,000 2017 wrappers expected to be redeemed in 2018 290,000 2018 wrappers expected to be redeemed in 2019 350,000 Instructions (a) Prepare the journal entries that should be made in 2017 and 2018 to record 1the transactions related to the premium plan of the Sycamore Candy Company. inventory (250,000'225} $562,500 Cash $562,500 Cash (2,895,400" .30} $868,620 $868.620 Inventory of Premiums (480,000+60,000) $540,000 Computation of premium expense {240,000'225) $540,000 Postage (240,000*,50] $120,000 Total: $660! Less: Cash Received [240,000" 2.50} 60 Premium Exrense for MP5 downloads issued $60,000 Eg