Please show your solution in good accounting form. Thank you! JINN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended: A. December 31, 2020 B. December 31, 2021 2. Compute for the premiums expense for the year ended: A. December 31, 2020 B. December 31, 2021 3. Compute for the premium liability for the year ended: A. December 31, 2020 B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash outflow, put a negative (-) sign before the numerical figure. A. December 31, 2020 B. December 31, 2021
Please show your solution in good accounting form. Thank you!
JINN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information:
| 2020 | 2021 | |
| Facial soap sales, ₱50 per unit | ₱ 2,500,000 | ₱ 2,875,000 |
| Towel purchases, ₱90 per unit | ₱ 337,500 | ₱ 360,000 |
| Number of box tops returned | 22,500 | 38,550 |
Requirements:
1. Compute for the premiums (as an asset) amount for the year ended:
A. December 31, 2020
B. December 31, 2021
2. Compute for the premiums expense for the year ended:
A. December 31, 2020
B. December 31, 2021
3. Compute for the premium liability for the year ended:
A. December 31, 2020
B. December 31, 2021
4. How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net
A. December 31, 2020
B. December 31, 2021
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