Susan Company participates in a customer loyalty program operated by an airline in wich customers earn air travel points when they purchased good from entity. The air travel points can be redeemed for free air travel.

The entity pays the airline 50 per air travel point and consider that the fair value of the air travel point is 60.

during the current year, susan company sold goods for 5,000,000 and granted 5,000 points

Required:

Prepare all indicated entries for the current year on the books of the entity in connection with the customer loyalty program of the airline under the following assumptions:

A. The entity is the principal in the transaction.

B. The entity is an agent of the airline.