Surf Company included one coupon in each box of laundry soap sold at P100 per box. A towel was offered as a premium to customers who send in 10 coupons and a remittance of P10. Distribution cost of premium is P5. Experience indicated that only 30% of the coupons will be redeemed. Boxes of soap sold Numbers of towels purchased at P50 each Coupons redeemed 2017 2018 200,000 250,000 5,000 8,000 40,000 70,000 1. Journalize the sales, purchase of premiums, redemption of premium, and accrual of premium in 2017 and 2018. 2. Compute for the total premium expense for 2017 and 2018 3. Compute for the estimated premium liability on December 31, 2017 and 2018.