Question #3- It is early in February 2017 and you are conducting the audit of Blast Off Air 2016 financial statements. Through discussion with Blast Off's Chief Financ Officer you learn of matters that have not yet been incorporated into the 20 financial statements: During 2016, Blast Off began a customer loyalty program. For each aerona mile that a passenger travels on a paid flight, the passenger accrues one fli mile. Passengers can redeem accrued flight miles for free air travel. Earned miles do not expire. Blast Off's analysis of its competitors' programs sugges average redemption rate of 55%. In 2016, Blast Off awarded 50,000,000 flig miles, 1,375,000 of which were redeemed. Management estimates the fair of the flight miles is $540,000. Required: Prepare the journal entries to record the required adjustments for the above event. (2 marks) Answer here