Twig and Leaf Cosmetics, a public company, maintains a loyalty program for its customers. For every purchase, members receive points that do not expire. In fiscal 2020, the store made sales of $1 million and awarded 50,000 points. The company estimates that 75% of these points will be redeemed by members. The fair value of the performance obligation associated with the rewards points is $50,000. Members redeemed 10,000 points in fiscal 2021.

What amount would be recorded as unearned revenue in 2020 related to these points?

• 10,000?
• 50,000?
• 13,333?
• 37,500?