o increase sales, Bramble Inc., a public company following IFRS, implemented a customer loyalty program that rewards a custon vith one loyalty point for every $35 of merchandise purchased. Each point is redeemable for a $2 discount on any purchases of Bramble merchandise in the next three years. After the program launched, during 2020, customers bought merchandise for $350 all products are sold to provide a 40% gross profit) and earned 10,000 points redeemable for future purchases. The stand-alone selling price of the merchandise sold is $350,000. Based on prior experience with incentive programs like this, Bramble expects 8, points to be redeemed related to these sales. Prepare the journal entries for cash sales including the issuance of loyalty points for Bramble in 2020. (Credit account titles ar automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" F the accouunt titles and enter 0 for the amounts Round norcon
o increase sales, Bramble Inc., a public company following IFRS, implemented a customer loyalty program that rewards a custon vith one loyalty point for every $35 of merchandise purchased. Each point is redeemable for a $2 discount on any purchases of Bramble merchandise in the next three years. After the program launched, during 2020, customers bought merchandise for $350 all products are sold to provide a 40% gross profit) and earned 10,000 points redeemable for future purchases. The stand-alone selling price of the merchandise sold is $350,000. Based on prior experience with incentive programs like this, Bramble expects 8, points to be redeemed related to these sales. Prepare the journal entries for cash sales including the issuance of loyalty points for Bramble in 2020. (Credit account titles ar automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" F the accouunt titles and enter 0 for the amounts Round norcon
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:To increase sales, Bramble Inc., a public company following IFRS, implemented a customer loyalty program that rewards a customer
with one loyalty point for every $35 of merchandise purchased. Each point is redeemable for a $2 discount on any purchases of
Bramble merchandise in the next three years. After the program launched, during 2020, customers bought merchandise for $350,000
(all products are sold to provide a 40% gross profit) and earned 10,000 points redeemable for future purchases. The stand-alone
selling price of the merchandise sold is $350,000. Based on prior experience with incentive programs like this, Bramble expects 8,000
points to be redeemed related to these sales.
Prepare the journal entries for cash sales including the issuance of loyalty points for Bramble in 2020. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for
the account titles and enter 0 for the amounts. Round percentage allocations to 2 decimal places, e.g. 52.75 and final
answers to 0 decimal places, e.g. 5,275.)
Account Titles and Explanation
Debit
Credit
(To record cash sales of products subject to loyalty points)
(To record cost of goods sold)
Transcribed Image Text:Would the accounting of the customer loyalty program be different if Bramble had been following ASPE?
Yes +
eTextbook and Media
List of Accounts
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