Winnipeg Air Corp. offers a customer loyalty program that grants members award miles for each flight taken. Members can redeem the miles, which expire 10 years after issuance, for future flights. Members must redeem 15,000 miles to obtain a return flight within Manitoba under the reward program (short-haul flight) and 25,000 miles to fly elsewhere in Canada.

Other facts follow: 

■ Winnipeg Air’s experience has been that 50% of the award flights taken are short-haul flights. 

■ In 2021, Winnipeg Air received $8,000,000 cash in flight-related revenue for flights taken in 2021. 

■ Winnipeg Air expects that 75% of the 8,000,000 miles awarded in 2020 will be redeemed before they expire. 

■ The performance obligation pertaining to the miles is estimated to be $90,000. 

■ During 2022, 60 short-haul award flights and 60 award flights for travel elsewhere in Canada were claimed. 

■ During 2023, 75 short-haul award flights and 75 award flights for travel elsewhere in Canada were claimed. 

Required:

a. Prepare a summary journal entry to record the flight-related revenue in 2021. 

b. Prepare summary journal entries to recognize award revenue in 2022 and 2023.