Selling Allocating Transaction Price to Performance Obligations and Recording Sales Maximum Inc. (retailer) has a loyalty program that rewards its customers one point per $1 spent. Points are redeemable for $0.20 off future purchases. A customer purchases products (cost of $140) for cash at the usual selling price of $200 and earns 200 points redeemable for $40 off future purchases of goods or services. The retailer expects redemption of 180 points or 90% of points earned. a. How should the transaction price be allocated among the performance obligation(s)? Note: Round each allocated transaction price in the table below to the nearest dollar. Transaction Standalone Allocated Price Transaction Price Performance Obligations as Stated Price (rounded) Product purchase 200$ 140 x $ 170 X Loyalty rewards 0 40 X 5 x $ 140 x $ Ox $ 175 x b. Prepare Maximum's journal entry to record the $200 sale to the customer where the customer earned 200 loyalty points. If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). Account Name Dr. Cr. Cash 200 07 Sales Revenue-Product 170 X Deferred Revenue-Loyalty Rewards 0 5 x To record sale of product. Cost of Goods Sold 140 0 Inventory 0 140 To record cost of sale of product. 0 Check