Manns Foods issues cash rewards of 2% to its customers for every dollar spent in their grocery stores. The rewards can be used on any subsequent purchase and history shows that about 80% of their customers will use the rewards. On one particular day total sales were $50,000. The journal entry that Manns Foods would use to recognize the rewards issued would include

a $1,250 credit to Sales.

a $1,250 credit to Unearned Revenue.

an $800 credit to Unearned Revenue-Loyalty Program.

a $1,000 debit to Redemption Expense.

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