Allocating Transaction Price to Performance Obligations and Recording Sales Maximum Inc. (retailer) has a loyalty program that rewards its customers one point per $1 spent. Points are redeemable for $0.20 off future purchases. A customer purchases products (cost of $280) for cash at the usual selling price of $400 and earns 400 points redeemable for $80 off future purchases of goods or services. The retailer expects redemption of 360 points or 90% of points earned. a. How should the transaction price be allocated among the performance obligation(s)? Note: Round each allocated transaction price in the table below to the nearest dollar. Transaction Standalone Allocated Price Selling Transaction Price Performance Obligations as stated P rice (rounded) Product purchase $ 400 $ 0 $ Loyalty rewards 0 0 $ 0 $ 0 $ b. Prepare Maximum's journal entry to record the $400 sale to the customer where the customer earned 400 loyalty points. If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). Account Name Dr. Cr. Sales Revenue-Product 0 To record sale of product. To record cost of sale of product