Question
A supermarket, XYZ Ltd, offers its regular customers a customer loyalty card. The customer is entitled to $20 off their groceries after each $3,000 spent
A supermarket, XYZ Ltd, offers its regular customers a customer loyalty card. The customer is entitled to $20 off their groceries after each $3,000 spent in the supermarket. On 14 August 2021 a customer comes into the supermarket. The customer has already accumulated grocery purchases of $2,850 on their card. The customer buys $350 worth of groceries. As the customer has now spent an accumulated total of more than $3,000 on grocery purchases in the supermarket, the customer is entitled and decides to redeem their $20 off their groceries. The customer pays only $330 for the $350 worth of groceries. Assume all customers will redeem. Required Show the journal entry in the books of XYZ Ltd to record the transaction on 14 August 2021 (assume a 60% mark-up on the price of these goods)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started