Problem 6-6 (Part Level Submission) Metlock Inc. has a customer loyalty program that rewards a customer with one customer loyalty point for every $100 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2017, customers purchase products for $240,000 (with a cost of $136,800) and earn 2,400 points redeemable for future purchases. Metlock expects 2,000 points to be redeemed (based on its past experience which is predictive of the amount of consideration to which it will be entitled). Metlock estimates a stand-alone selling price of S2.50 per point (or $6,000 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, Metlock concludes that the points are a separate performance obligation (c) Your answer is partially correct. Try again. At the end of the first reporting period (July 31, 2017), 1,000 loyalty points are redeemed. Metlock continues to expect 2,000 loyalty points to be redeemed in total. Determine the amount of loyalty point revenue to be recognized at July 31, 2017 Loyalty point revenue recognized 2500 Prepare the journal entry for cash sales on July 31, 2017, assuming the points were applied to cash sales of $60,000 with a cost of $31,200. (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. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit uly 31, 2017 Cash 59000 Unearned Revenue 2500 Sales Revenue To record sales.) Duly 31, 2017 Cost of Goods Sold 31200 Inventory 31200