Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hi there cannyou please help I'm struggling. Its ifric 13 Question 4 [24] In 2018, Allfuels Limited introduced a loyalty programme for their customers. Every

hi there cannyou please help I'm struggling. Its ifric 13

image text in transcribed

image text in transcribed

Question 4 [24] In 2018, Allfuels Limited introduced a loyalty programme for their customers. Every customer is rewarded one point for every R10 worth of purchases (irrespective of the type of purchase). Customers can redeem these points in the future for a R1 discount for every point on future purchases either in the convenience shop or for fuel purchases. During March 2019, customer purchases (both fuel and the convenience store) totalled R1 000 000 and earned 100 000 in points. The consideration is fixed and the stand-alone selling price of purchased books is R1 000 000. Past history indicates that 95 000 points will be redeemed. AllFuels Limited has estimated a stand-alone selling price of R0,95 per on the basis that 95 000 points will be redeemed. 4.2 Calculate the transaction price to be allocated to the performance obligations of AllFuels Limited and prepare the journal entry to record the March 2020 sales. (12)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health And Safety Environment And Quality Audits

Authors: Stephen Asbury

3rd Edition

0815375395, 978-0815375395

More Books

Students also viewed these Accounting questions