Best Burritos Inc., a restaurant chain, sponsors a new customer loyalty program. For every purchase, the customer swipes their reward card that tracks their spending at the restaurant. Every cumulative $50 spent earns the customer a free menu item. It is common for customers to track spending using the loyalty card and to accumulate the right to free menu items.

For the month of June 2020, Best Burritos Inc. records sales of $150,000 with 70% of the sales registered on loyalty cards. The average value of a food item expected to be redeemed by a customer, as a free menu item, is $6.50. The average redemption rate is estimated at 60%. Round amounts to the nearest dollar.

a. Determine the transaction price for the product and for the customer loyalty program._150,000

b. Record the journal entry for the June 2020 sales. Ignore the cost of sales entry.

• Note: Round the allocated transaction prices to the nearest whole dollar.

	Transaction	Standalone	Allocated
Performance	Price	Selling	Transaction Price
Obligations	as Stated	Price	(rounded)
Restaurant sales	150,000	?	?
Loyalty rewards	0	?	?
	150,000	?	150,000

• Note: List multiple debits or credits (when applicable) in alphabetical order according to the first letter of the account name.

cash	150,000	0
Sales RevenueRestaurant Sales	0	?
Sales Revenue-restaurant sales	0	?

c. At the end of June 2020, 300 items are redeemed for $1,800. Record the redemption entry in June 2020.

Account Name	Dr.	Cr.
Deferred Revenue	?	0
Sales RevenueRestaurant Sales	0	?

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Best Burritos Inc., a restaurant chain, sponsors a new customer loyalty program. For every purchase, the customer swipes their reward card that tracks their spending at the restaurant. Every cumulative $50 spent earns the customer a free menu item. It is common for customers to track spending using the loyalty card and to accumulate the right to free menu items. For the month of June 2020, Best Burritos Inc. records sales of $150,000 with 70% of the sales registered on loyalty cards. The average value of a food item expected to be redeemed by a customer, as a free menu item, is $6.50. The average redemption rate is estimated at 60%. Round amounts to the nearest dollar. a. Determine the transaction price for the product and for the customer loyalty program. $ 0 x b. Record the journal entry for the June 2020 sales. Ignore the cost of sales entry. Note: Round the allocated transaction prices to the nearest whole dollar Transaction Performance Price Obligations as Stated Restaurant sales $ 150,000 Loyalty rewards0 $ 150,000 Standalone Allocated Selling Transaction Price Price (rounded) $ 0 $ OX 0X0 x $ 150,000 x $ 150,000 Note: List multiple debits or credits (when applicable) in alphabetical order according to the first letter of the account name. Account Name Dr. Cr. 150, 0000 Cash 0 x Deferred Revenue Sales Revenue-Restaur c. At the end of June 2020, 300 items are redeemed for $1,800. Record the redemption entry in June 2020. Account Name Dr. Cr. Deferred Revenue O x 0 Sales Revenue-Loyalty Best Burritos Inc., a restaurant chain, sponsors a new customer loyalty program. For every purchase, the customer swipes their reward card that tracks their spending at the restaurant. Every cumulative $50 spent earns the customer a free menu item. It is common for customers to track spending using the loyalty card and to accumulate the right to free menu items. For the month of June 2020, Best Burritos Inc. records sales of $150,000 with 70% of the sales registered on loyalty cards. The average value of a food item expected to be redeemed by a customer, as a free menu item, is $6.50. The average redemption rate is estimated at 60%. Round amounts to the nearest dollar. a. Determine the transaction price for the product and for the customer loyalty program. $ 0 x b. Record the journal entry for the June 2020 sales. Ignore the cost of sales entry. Note: Round the allocated transaction prices to the nearest whole dollar Transaction Performance Price Obligations as Stated Restaurant sales $ 150,000 Loyalty rewards0 $ 150,000 Standalone Allocated Selling Transaction Price Price (rounded) $ 0 $ OX 0X0 x $ 150,000 x $ 150,000 Note: List multiple debits or credits (when applicable) in alphabetical order according to the first letter of the account name. Account Name Dr. Cr. 150, 0000 Cash 0 x Deferred Revenue Sales Revenue-Restaur c. At the end of June 2020, 300 items are redeemed for $1,800. Record the redemption entry in June 2020. Account Name Dr. Cr. Deferred Revenue O x 0 Sales Revenue-Loyalty