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D. Windsor Inc. has a customer loyalty program that rewards a customer with 1 loyalty star for every $10 of purchase. Each star is redeemable

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D. Windsor Inc. has a customer loyalty program that rewards a customer with 1 loyalty star for every $10 of purchase. Each star is redeemable for a $3 discount on any future purchases. In August 2022, customers purchase products for $240,000 (with a cost of $120,000 ) and earn 24,000 stars redeemable for future purchases. Windsor expects 20,000 stars to be redeemed. Windsor estimates a standalone selling price of $2.50 per star (or $60,000 total) on the basis of likelihood of redemption. Windsor concludes that the redeemable stars are a separate performance obligation. In September 2022, customers purchase products for $150,000 and redeem 12,000 stars. Assume no new loyalty stars are earned for the purchases in September. Prepare the journal entries to record the sale of the product and related points in August for Windsor (13 points). Prepare the journal entries to record the sale of the product and redemption of points in September for Windsor ( 5 points). D. Windsor Inc. has a customer loyalty program that rewards a customer with 1 loyalty star for every $10 of purchase. Each star is redeemable for a $3 discount on any future purchases. In August 2022, customers purchase products for $240,000 (with a cost of $120,000 ) and earn 24,000 stars redeemable for future purchases. Windsor expects 20,000 stars to be redeemed. Windsor estimates a standalone selling price of $2.50 per star (or $60,000 total) on the basis of likelihood of redemption. Windsor concludes that the redeemable stars are a separate performance obligation. In September 2022, customers purchase products for $150,000 and redeem 12,000 stars. Assume no new loyalty stars are earned for the purchases in September. Prepare the journal entries to record the sale of the product and related points in August for Windsor (13 points). Prepare the journal entries to record the sale of the product and redemption of points in September for Windsor ( 5 points)

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