Rachels Deli (RD) is a deli that sells fresh sandwiches, soups, and salads. Rachels Deli was founded by Rachel and Kyle, who are brother and sister, and began as a small, local deli in Edmonton. Based on rave reviews of their salmon grilled sandwich, Rachel and Kyle have decided to expand operations within Alberta. As part of the expansion plans, all of the assets were rolled over into a newly formed corporation that has a fiscal year end of December 31, 2020. The corporation issued 50,000 shares to each of Rachel and Kyle for $3 per share. Upon incorporation, RD also received a 10-year, 9%, $250,000 loan with annual payments from the First Bank of Edmonton to help finance the expansion. During their first year of operations, Rachel and Kyle decided to hire Lebeau and Liang LLP (L&L) to help develop accounting policies that are consistent with ASPE for various new transactions. You, a senior accountant with L&L, have been assigned to the RD file and met with Rachel and Kyle to discuss the various new issues. Rachel and Kyle have provided you with the following information regarding the new issues:

1) RD implemented a customer loyalty program at the beginning of the year. Each customer receives one Grill Point for every large sandwich that they purchase. A customer receives a free large sandwich once they earn 10 Grill Points. A large sandwich sells for an average of $5 and costs an average of $3 to produce. As of year end, a total of 23,500 Grill Points were issued. Rachel and Kyle did not know how to account for this program and stated that they will record the expense of the free sandwich when a customer redeems their points. Fixed costs are approximately 30% of gross margin

Please provide detailed Journal Entries according to ASPE