Problem 3 Physical Education Corporation manufactures a special laundry soap. A towel is offered as a premium to customers who send in two proof-of-purchase seals from the soap boxes and a remittance of P20. Distribution cost of P5 per towel. Soap sales Towel purchases (P100 per towel) Number of towels distributed as premium Number of towels expected to be distributed in subsequent period 2019 2,500,000 175,000 1,000 2020 3,125,000 200,000 1,800 600 800 Required: 1) Prepare journal entries that would be made in 2019 and 2020 to record sales, premium purchases and redemptions, and year-end adjustments. 2) Statement classification of the account balances pertaining to the premium plan