Question
Help pleaseee.. Chicken Nuggets Company, an apothecary, operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount
Help pleaseee.. Chicken Nuggets Company, an apothecary, operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount of medicines. Program members can redeem the points for further medicines. The points have no expiry date.
During 2020, the sales amounted to P7,000,000 based on stand-alone selling price. During the year, the entity granted 10,000 points. But management expected that only 80% or 8,000 points will be redeemed. The stand alone selling price of each loyalty point is P100. On Dec. 31, 2020, 4,800 points have been redeemed.
In 2021, management revised its expectations and now expected that 90% or 9,000 points will be redeemed altogether. During 2021, the entity redeemed 2,400 points.
What amount should be reported as sales revenue including the revenue earned from points for 2020?
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