In order to promote the ding

nt year 4 premium Play

ed in, customers regg;

e for a grand pri
ned in. 7 of

Problem 9-3 (IAA)

ny sells banana juice.
Log Cony inaugurated in the curre
called “prink-N-Win.’
For every 10 bottle caps and P6 turne
an attractive ball-pen and become eligibl
P5,000 in cash awarded for every 100 tops tur
The entity estimated that only 25% of bottle caps reaching ¢
hands of customers will be presented for redemption. be
During the curren e entity sold 400,000 bottles
banana juice at P9 each, purchased 10,000 ball point pens f of
total cost of P900,000, and incurred nondeferrable conn ‘
P30,000 applicable to the premium plan. of
A total of 8,000 pens have been redeemed and thirty grang

prizes have been awarded.

t year, th

Required:
Prepare journal 1
entries to record the i
to the premium plan for the current ao a