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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)

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