questions 3 and 4 based on the following intormation J:'.'i' Airways, a regional air carrier, has a frequent-flyer program in which customers receive two points for each mile flown on its flights. Frequent flyer program members can redeem 60,000 polets for a free domestic flight, which on average, would otherwise cost $1,500. During Year 1. ET awarded 5,000,000 points to its customers on flights with total ticket sales of $3.000.000 Frequent flyer points expire two years after are awarded. By the end of Year 1, frequent flyer program members had redeemed 1,500,000 points for free tickets, ET expects that onlyr 20 percent of points will expire unredeemed. ET adheres to [PBS in its accounting and