Familiar Company 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 450,000 award credits and expects that 40% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P9,000,000. In 2019, the entity sold goods to customers for a total consideration of P36,000,0000 based on a stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 135,000 40% 2020 67,500 45% What is the revenue from points for 2019? P1,350,000 P3,600,000 P1,080,000 P3,375,000 What is the revenue from points for 2020? P270,000 P450,000 P540,000 P 0

Familiar Company 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 450,000 award credits and expects that 40% of these award credits shall be redeemed. The total stand-alone selling price of the award credits granted is measured reliably at P9,000,000. In 2019, the entity sold goods to customers for a total consideration of P36,000,0000 based on a stand-alone selling price. The award credits redeemed and the total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2019 135,000 40% 2020 67,500 45% What is the revenue from points for 2019? P1,350,000 P3,600,000 P1,080,000 P3,375,000 What is the revenue from points for 2020? P270,000 P450,000 P540,000 P 0

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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