PROBLEMS Problem 2-1 (IAA) Miracle Company manufacturers a product that is packaged and sold. A plate is offered to customers sending in three wrappers accompanied by a remittance of P10. Data with respect to the premium offer are summarized below. 2020 2021 Sales 3,600,000 4,200,000 Purchase of premium, P50 per plate 390,000 580,000 Number of plates distributed as premiums 5,000 9,000 Estimated number of plates to be distributed in subsequent period 2,000 3,000 Distribution cost P20 per plate Required: Prepare journal entries that would be made in 2020 and 2021 to record sales, premium purchases and redemptions, and year-end adjustments. Problem 2-2 (IAA) Cascade Company 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 is P5 per towel. Data for the premium offer are. 2020 2021 Soap sales 2,500,000 3,125,000 Towel purchases, P100 per towel 175,000 200,000 Number of towels distributed as premium 1,000 1,800 Number of towels expected to be distributed in subsequent period 600 800 Required: 1. Prepare journal entries for 2020 and 2021. 2. Statement classification of the account balances pertaining to the premium plan. 55