During the year, ABC launched a new loyalty program called the Movie Program (MP). Individuals can sign
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During the year, ABC launched a new loyalty program called the Movie Program (MP). Individuals can sign up for a loyalty card and earn 1 point for every movie ticket purchased. Seven points are required for a free movie. The program has been a big success, and 345,548 points were issued during 2021, with 25,152 free movies being awarded. Management expects that 14% of the points will never be redeemed (that is, 1 out of 7 points). On average, a movie ticket has a retail value of $10 and a total cost of $3. No journal entries have been recorded in the financial statements related to the MP.
Record the necessary journal entries of 2021 for the above.
Related Book For
Essential Statistics in Business and Economics
ISBN: 978-1260239508
3rd edition
Authors: David Doane, Lori Seward
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