Problem 2-13 IFRS)Arianne Company, a grocery retailer, operates a customerloyalty program. The entity grants program members loyaltypoints when they spendspecified amount ongroceries.Program members can redeem the points for groceries. Thepoints have no expiry date.During 2022, the sales amounted to P7,000,000 based onstand-alone selling price. During 2022, the entity granted 10,000points. But management expected that only 80% or 8,000 pointswill be redeemed. The stand alone selling price of each loyaltypoint was estimated at P100.On December 31, 2022, 4,800 points have been redeemed. In2023, management revised its expectations and now expectedthat 90% or 9,000 points will be redeemed altogether. During2023, the entity redeemed 2,400 points.Required:Prepare journal entries for 2022 and 2023.Problem 2-14 (IFRS)Erika Company operates a customer loyalty program. Theentity grants loyalty points for goods purchased. The loyaltypoints can be used by the customers in exchange for goods ofthe entity. The points have no expiry date.During 2022, the entity issued 50,000 award credits andexpected that 80% of these award credits shall be redeemed.The stand-alone selling price of the award credits grantedis reliably measured at P1,000,000. In 2022, the entity soldgoods to customers for a total consideration of P7,000,000based on stand-alone selling price. The award creditsredeemed and the total award credits expected to beredeemed each year are:Redeemed15,0007,9502,55015,0002022202320242025Expected to be redeemed80%85%85%90%RequiredPrepare journal entries for 2022, 2023, 2024 and 2025.56ProIn asalecousoldpreThewilthePacPreCou1.2.PrPREESE ESSEBainforyeTHprTHyeWlia

ANSWER:- 2-13 JOURNAL ENTRIES FOR 2022:- DATE PARTICULARS REF. NO. DEBIT…

Arianne Con loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for groceries. The points have no expiry date. During 2022, the sales amounted to P7,000,000 based on stand-alone selling price. During 2022, the entity granted 10,000 points. But management expected that only 80% or 8,000 points will be redeemed. The stand alone selling price of each loyalty point was estimated at P100. On December 31, 2022, 4,800 points have been redeemed. In 2023, management revised its expectations and now expected that 90% or 9,000 points will be redeemed altogether. During 2023, the entity redeemed 2,400 points. Required: Prepare journal entries for 2022 and 2023.

Arianne Con loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for groceries. The points have no expiry date. During 2022, the sales amounted to P7,000,000 based on stand-alone selling price. During 2022, the entity granted 10,000 points. But management expected that only 80% or 8,000 points will be redeemed. The stand alone selling price of each loyalty point was estimated at P100. On December 31, 2022, 4,800 points have been redeemed. In 2023, management revised its expectations and now expected that 90% or 9,000 points will be redeemed altogether. During 2023, the entity redeemed 2,400 points. Required: Prepare journal entries for 2022 and 2023.

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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