A television satellite operator launches a loyalty program by which points are granted for using satellite services. The pointsentitle the customer to a discount on the price to upgrade the satellite receiver or other equipment such as a digital box.Customers who accumulate 1,036 points will receive $259 off the purchase price of any equipment. (In other words, one point hasa $0.25 value.) During the first year of the program, customers had accumulated 1,554,000 points on total revenue of $7,536,900.The operator expects that 60% of the points granted will be redeemed. Of the points granted in the first year, 518,000 wereredeemed. How would the loyalty program be reflected in the first two years of launch? (Do not round other intermediatecalculations. Round percentage of total selling price calculations to 1 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g.125.)RevenueLiability related to loyalty points$7536900

As per IFRS, when a business entity issue loyalty points to its customers, which can be used for…

1,554,000 points on total revenue of $7,536,900. Operator expects that 60% of the points granted will be redeemed. Of the points granted in the first year, 518,000 were redeemed. How would the loyalty program be reflected in the first two years of launch? (Do not round other intermediate calculations. Round percentage of total selling price calculations to 1 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g. 125.) Revenue Liability related to loyalty points $ 7536900

1,554,000 points on total revenue of $7,536,900. Operator expects that 60% of the points granted will be redeemed. Of the points granted in the first year, 518,000 were redeemed. How would the loyalty program be reflected in the first two years of launch? (Do not round other intermediate calculations. Round percentage of total selling price calculations to 1 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g. 125.) Revenue Liability related to loyalty points $ 7536900

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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