Sycamore Candy offers an MP3 download (seven-single medley) as a premium for every five candy bar wrappers presented by customers together with £2.50. The candy bars are sold by the company to distributors for 30 pence each. The purchase price of each download code to the company is £2.25. In addition, it costs £0.50 to distribute each code. The results of the premium plan for the years 2019 and 2020 are as follows. (All purchases and sales are for cash.)

Instructions
a. Prepare the journal entries that should be made in 2019 and 2020 to record the transactions related to the premium plan of the Sycamore Candy.
b. Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the statement of financial position and the income statement at the end of 2019 and 2020.

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2020 2019 MP3 codes purchased 250,000 330,000 2,895,400 2,743,600 Candy bars sold Wrappers redeemed 2019 wrappers expected to be redeemed in 2020 1,200,000 1,500,000 290,000 2020 wrappers expected to be redeemed in 2021 350,000