Waterway Corporation sold Sugar Frosted Cocoa Bombs, a childrens breakfast cereal. As a promotion, Waterway offered its customers a free music CD in exchange for 4 boxtops, plus $3.30 to cover postage and handling. The CD cost Waterway $3.55, and postage costs to mail the CDs out to customers were $2.50. Waterway estimated that 80% of its customers would redeem boxtops. Waterway purchased 12,200 CDs at the start of the promotion in November, 2020. 155,000 boxes of cereal were sold during November and December, 2020, and Waterways year-end was December 31. Prior to the end of the fiscal year, 9,600 customers took advantage of the offer, which continued until February, 2021. Waterway follows ASPE and uses the expense approach to account for its premiums.

Prepare the journal entry to record the purchase of the promotional CDs. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Prepare the journal entry to record the redemption by 9,600 customers. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Prepare the journal entry to record the year-end accrual entry for estimated premium expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit