To increase the sales of its Sugar Kids breakfast cereal, Whispering Winds Foods Limited places one coupon in each cereal box. Five coupons are redeemable for a premium consisting of a childs hand puppet. In 2020, Whispering Winds purchases 41,400 puppets at $ 1.65 each and sells 489,000 boxes of Sugar Kids at $ 3.05 a box. Ignore any cost of goods sold. Whispering Winds estimates that $ 0.20 of the sale price relates to the hand puppet to be awarded. From its experience with other similar premium offers, Whispering Winds estimates that 40% of the coupons issued will be mailed back for redemption. During 2020, 115,500 coupons are presented for redemption. Whispering Winds is a private company following ASPE.

a) Prepare the journal entries that should be recorded in 2020 relative to the premium plan, assuming that Whispering Winds follows a policy of charging the cost of coupons to expense as they are redeemed and adjusting the liability account at year end.

b) Prepare the journal entries that should be recorded in 2020 relative to the premium plan, assuming that Whispering Winds follows a policy of charging the full estimated cost of the premium plan to expense when the sales are recognized.

c) Prepare the journal entries that should be recorded in 2020 relative to the premium plan, assuming that Whispering Winds follows IFRS and accounts for its promotional programs in accordance with the revenue approach and IFRS 15.