MARYJANE, IN., a grocery business, operates a customer loyalty program. MARYJANE grantsits program members points when they spend a specified amount of purchases. The points haveno expiry date, and they can use the points for further purchases. During 2021, the customersearned 80,000 points, but management expects that 75% of these points will be redeemed. Thestand-alone selling price of each loyalty point is estimated at Php 20. The sales during 2021amounted to Php 6,800,000 on stand-alone selling price.On December 31, 2021, 28,800 points have been redeemed. In 2022, the management revisedits expectations and now expects 85% of the points to be redeemed. In 2022, the 12,000 pointswere redeemed.a. 1,367,481b. 1,200,000c. 1,020,000d. 1,295,238What amount of the transaction priceshould be allocated to the groceries?

As per the given info in the problem , the customers…

Answered: Is program memb no expiry date, ane…

Business

Accounting

Is program memb no expiry date, ane earned 80,000 poi stand-alone selling

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 18E: On December 1, 2019, AwakcAllNight Inc. sells 5,000 super caffeinated candy bars to Campus Grocers....

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