5. MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 50,000 award credits. The fair value of the award credits is reliably measured at P2,000,000. In 2019, the entity sold goods to customers for a total consideration of P9,000,000 including the fair value of the award credits. The total award credits expected to be redeemed are 80% in 2019 and 85% in 2020. The award credits actually redeemed are 15,000 in 2019 and 7,950 in 2020. What is the revenue earned from points in 2020? * а. Р600,000 b. P750,000 с. Р330,000 d. P318,000
5. MASAKIT SA BUNGO CORPORATION operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2019, the entity issued 50,000 award credits. The fair value of the award credits is reliably measured at P2,000,000. In 2019, the entity sold goods to customers for a total consideration of P9,000,000 including the fair value of the award credits. The total award credits expected to be redeemed are 80% in 2019 and 85% in 2020. The award credits actually redeemed are 15,000 in 2019 and 7,950 in 2020. What is the revenue earned from points in 2020? * а. Р600,000 b. P750,000 с. Р330,000 d. P318,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:5. MASAKIT SA BUNGO
CORPORATION operates a
customer loyalty program. The
entity grants loyalty points for
goods purchased. The loyalty
points can be used by the
customers in exchange for
goods of the entity. The points
have no expiry date. During
2019, the entity issued 50,000
award credits. The fair value of
the award credits is reliably
measured at P2,000,000. In
2019, the entity sold goods to
customers for a total
consideration of P9,000,000
including the fair value of the
award credits. The total award
credits expected to be
redeemed are 80% in 2019 and
85% in 2020. The award
credits actually redeemed are
15,000 in 2019 and 7,950 in
2020. What is the revenue
earned from points in 202O? *
a. P600,000
b. P750,000
c. P330,000
d. P318,000
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