To increase sales, Bridgeport Inc , a public company following IFRS, implemented a customer loyalty program that rewards a customer with one loyalty point for every $25 of merchandise purchased Each point is redeemable for a $2 discount on any purchases of Bridgeport merchandise in the next three years After the program launched, during 2020, customers bought merchandise for $255,000 (all products are sold to provide a 40 gross profit) and earned 10,200 points redeemable for future purchases The stand alone selling price of the merchandise sold is $255,000 Based on prior experience with incentive programs like this, Bridgeport expects 7,700 points to be redeemed related to these sales Please help me to do the red blank Prepare the journal entries for cash sales including the issuance of loyalty points for Bridgeport in 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 O for the amounts Round percentage allocations to 2 decimal places, e g 52 75 and final answers to O decimal places, e g 5,275 ) Account Titles and Explanation Debit Credit Cash 255000 Unearned Revenue 7474 Sales Revenue 247526 (To record cash sales of products subject to loyalty points) Cost of Goods Sold 153000 Inventory 153000 (To record cost of goods sold)

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Posted on Jul 18, 2024

To increase sales, Bridgeport Inc., a public company following IFRS, implemented a customer loyalty program that rewards a customer with one loyalty point for every

To increase sales, Bridgeport Inc., a public company following IFRS, implemented a customer loyalty program that rewards a customer with one loyalty point for every $25 of merchandise purchased. Each point is redeemable for a $2 discount on any purchases of Bridgeport merchandise in the next three years. After the program launched, during 2020, customers bought merchandise for $255,000 (all products are sold to provide a 40% gross profit) and earned 10,200 points redeemable for future purchases. The stand-alone selling price of the merchandise sold is $255,000. Based on prior experience with incentive programs like this, Bridgeport expects 7,700 points to be redeemed related to these sales.

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Prepare the journal entries for cash sales including the issuance of loyalty points for Bridgeport in 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 O for the amounts. Round percentage allocations to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Cash 255000 Unearned Revenue 7474 Sales Revenue 247526 (To record cash sales of products subject to loyalty points) Cost of Goods Sold 153000 Inventory 153000 (To record cost of goods sold)