Please Solve for B

Crane Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2025, customers purchase products for $340,000 (with a cost of $197,200) and earn 34,000 points redeemable for future purchases. Crane expects 29,000 points to be redeemed. Crane estimates a standalone selling price of $2.50 per point (or $85,000 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Crane concludes that the points are a separate performance obligation.

(a)

Determine the transaction price for the product and the customer loyalty points.

Product purchases		$272,000
Loyalty points		$68,000
Total transaction price		$340,000

(b)

Prepare the journal entries to record the sale of the product and related points on July 2, 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

Date	Account Titles and Explanation	Debit	Credit
July 2, 2025	enter an account title to record sales	enter a debit amount	enter a credit amount
	enter an account title to record sales	enter a debit amount	enter a credit amount
	enter an account title to record sales	enter a debit amount	enter a credit amount
	(To record sales)
July 2, 2025	enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
	enter an account title to record cost of goods sold	enter a debit amount	enter a credit amount
	(To record cost of goods sold)