To increase the sales of its Sugar Kids breakfast cereal, KW Foods Limited $($KW$)$ places one coupon in each cereal box. Five coupons are redeemable for a premium consisting of a child$$s hand puppet. In $2023,$ KW purchases $40,000$ puppets at $$1\mathrm{.}50$ each and sells $480,000$ boxes of Sugar Kids at $$3\mathrm{.}75$ a box. Ignore any cost of goods sold. KW estimates that $$0\mathrm{.}20$ of the sale price relates to the hand puppet to be awarded. From its experience with other similar premium offers, KW estimates that $40\%$ of the coupons issued will be mailed back for redemption. During $2023,115,000$ coupons are presented for redemption. KW is a private company following ASPE.

Instructions

a$)$ Prepare the journal entries that should be recorded in $2023$ relative to the premium plan, assuming that KW 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 $2023$ relative to the premium plan, assuming that KW follows a policy of charging the full estimated cost of the premium plan to expense when the sales are recognized.

c$)$ How would the accounts resulting from the entries in parts $($a$)$ and $($b$)$ be presented on the $2023$ financial statements?

d$)$ Prepare the journal entries that should be recorded in $2023$ relative to the premium plan, assuming that KW follows IFRS and accounts for its promotional programs in accordance with the revenue approach and IFRS $15.$

e$)$ How would the accounts resulting from the entries in part $($d$)$ be presented on the $2023$ financial statements?