Answer:
Explanation:
1)
Dr Cash 108,000
Dr Account receivable 27,000
Cr Sales Revenue 121,500
Cr Deferred revenue 13,500
2)
Stand alone selling price of loyalty point = (value of loyalty point * estimated redemption) = 125,000 * 0.20 * 60% = 15,000
Total stand alone selling price = stand alone selling price purchased product + stand alone selling price of loyalty points = 135,000+15,000 = 150,000
Share percentage for purchased product = stand alone selling price purchased product/total stand alone selling price = 135,000/150,000=
=90%
Share percentage for loyalty points = stand alone selling price of loyalty point/total stand alone selling price = 15,000/150,000 = 10%
Selling price of purchased products = transaction price * share percentage = 135,000*90% = 121,500
Selling price of loyalty points = transaction price * share percentage = 135,000*10% = 13,500
Cash = 135,000 *80% = 108,000
Account receivable = 135,000 *20% = 27,000
Dr Cash 36,000
Dr Account receivable 12,000
Dr Deferred revenue 10,800
Cr Sales revenue 58,800