Problem 18-07 Bonita 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, 2020, customers purchase products for $250,000 (with a cost of $132,500) and earn 25,000 points redeemable for future purchases. Bonita expects 20,300 points to be redeemed. Bonita estimates a standalone selling price of $2.50 per point (or $62,500 total) on the basis of the likelihood of redemption. The points provide material right to customers that they would not receive without entering into a contract. As a result, Bonita concludes that the points are a separate performance obligation. Determine the transaction price for the product and the customer loyalty points. Product Purchases Loyalty Points $ Total Transaction Price Prepare the journal entries to record the sale of the product and related points on July 2, 2020. (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 o for the amounts.) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) SHOW LIST OF ACCOUNTS LINK TO TEXT At the end of the first reporting period (July 31, 2020), 8,120 loyalty points are redeemed. Bonita continues to expect 20,300 loyalty points to be redeemed in total. Determine the amount of loyalty point revenue to be recognized at July 31, 2020. Amount of Loyalty Point Revenue $