Question 5 of 5 -/2 View Policies Current Attempt in Progress Sweet 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 $ 340,000 (with a cost of $ 197,200) and earn 34.000 points redeemable for future purchases. Sweet expects 29.000 points to be redeemed. Sweet 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, Sweet concludes that the points are a separate performance obligation. (a) Determine the transaction price for the product and the customer loyalty points. Product Purchases $ Loyalty Points $ Total Transaction Price $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (b) 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 for the amounts.) Account Titles and Explanation Debit Credit Cash Unearned Sales Revenue Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer Inventory (To record cost of goods sold) e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (c) At the end of the first reporting period (July 31, 2020), 11,600 loyalty points are redeemed. Sweet continues to expect 29,000 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 eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit