Page 1 ACCT 373 Ch 13 act 1. Premiums. 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 ench mug. The results of the premium plan for the years 2017 and 2018 are as follows (assume all purchases and sales are for cash)i 2018 800,000 6,750,000 4,200,000 Coffee mugs purchased Candy bars sold Wrappers redeemed 2017 wrappers expected to be redeemed in 2018 201 720,000 5,600,000 2.800,000 2,000,000 18 wrappers expected to be redeemed in 2019 2,700,000 Instructions (a) Prepare the general journal entries that should be made in 2017 and 2018 related to the above plan by Kane Candy. (b) 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 income statement at the end of 2017 and 2018