To increase sales, Pharoah Inc., a public company following IFRS, implemented a customer loyalty program that rewards a customer

with one loyalty point for every $$30$ of merchandise purchased. Each point is redeemable for a $$2\mathrm{.}50$ discount on any purchases of

Pharoah merchandise in the next three years. After the program launched, during $2023,$ customers bought merchandise for $$300,000$

$($all products are sold to provide a $30\%$ gross profit$)$ and earned $10,000$ points redeemable for future purchases. The stand$-$alone

selling price of the merchandise sold is $$300,000.$ Based on prior experience with incentive programs like this, Pharoah expects $8,000$

points to be redeemed related to these sales.

$($b$)$

Prepare the journal entries for cash sales including the issuance of loyalty points for Pharoah in $2023.($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 $0$ for the amounts. Round percentage allocations to $2$ decimal places, e$.$g$.52\mathrm{.}75\%$ and final answers to $0$ decimal places, e$.$g$.$

$5,275.$ List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To record cash sales of products subject to loyalty points$)$

$($To record cost of goods sold$)$