Rightstore plc is a retailer that operates a customer loyalty programme. For every pound that a customer

Question:

Rightstore plc is a retailer that operates a customer loyalty programme. For every pound that a customer spends in any of the company’s stores, they receive one point. Once a customer has accrued 1,000 points they are entitled to buy a free product to the value of

£100 from any of Rightstore’s department stores. LO6 During August 20X8, the total sales price of items sold to loyalty card holders is £6,500.

Prior experience has shown that 10% of customers do not redeem their points before they expire.

Required:

Show how Rightstore plc should account for the cash received of £6,500 in the month of August 20X8 according to IFRS 15 Revenue from Contracts with Customers.

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Asim farooq

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