Martinez offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers presented by customers together with $2.85. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.60. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2020 and 2021 are as follows. (All purchases and sales are for cash.)

		2020		2021
MP3 codes purchased		300,000		396,000
Candy bars sold		3,180,800		2,948,900
Wrappers redeemed		1,440,000		1,800,000
2020 wrappers expected to be redeemed in 2021		348,000
2021 wrappers expected to be redeemed in 2022				420,000

Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the premium plan of the Martinez. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 1,525.)

Account Titles and Explanation	Debit	Credit
2020
(To record the premium inventory.)
(To record the sales.)
(To record the expense associated with the sale.)
(To record the premium liability.)
2021
(To record the premium inventory.)
(To record the sales.)
(To record the expense associated with the sale.)
(To record the premium liability.)

Indicate the amounts for each accounts, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2020 and 2021.

		Amount
Account		2020		2021		Classification
Inventory of Premiums		$		$		Current AssetLong-term InvestmentsCurrent LiabilitySelling ExpenseProperty, Plant and EquipmentStockholders' Equity
Premium Liability						Property, Plant and EquipmentStockholders' EquityCurrent LiabilityCurrent AssetLong-term InvestmentsSelling Expense
Premium Expense						Current LiabilitySelling ExpenseLong-term InvestmentsProperty, Plant and EquipmentStockholders' EquityCurrent Asset

Account list:

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation-Plant Assets
• Allowance from Expropriation
• Asset Retirement Obligation
• Cash
• Depreciation Expense
• Dividends Payable
• Due to Customer
• Discount on Notes Payable
• FICA Taxes Payable
• Freight-In
• FUTA Taxes Payable
• Insurance Premium Payable
• Interest Expense
• Interest Payable
• Inventory
• Inventory of Premiums
• Land Improvements
• Lawsuit Liability
• Lawsuit Loss
• Litigation Expense or Loss
• Litigation Liability
• Loss from Expropriation
• Loss on ARO Settlement
• No Entry
• Notes Payable
• Oil Platform
• Payroll Tax Expense
• Plant Assets
• Premium Expense
• Premium Liability
• Purchases
• Purchase Discounts
• Purchase Returns and Allowances
• Retained Earnings
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales Revenue
• Sales Tax Payable
• SUTA Taxes Payable
• Trucks
• Unearned Sales Revenue
• Unearned Warranty Revenue
• Union Dues Payable
• Warranty Expense
• Warranty Liability
• Warranty Revenue
• Withholding Taxes Payable