2 / 6 100% + Each point is redeemable for a R3 in value for...
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Accounting
2 / 6 100% + Each point is redeemable for a R3 in value for purchases of Verruca Limited products. During a reporting period, customers who took part in the loyalty programme purchased products for R450 000, thus earning the promised number of points. Verruca Limited expects 95% of the points to be redeemed. The entity estimates a stand-alone selling price of R3 per point. Required: 1. Briefly explain how Verruca Limited should account for the customer loyalty programme with respect to the performance obligations and allocation of the transaction price Your answer should include: Identifying the performance obligations Allocation of the transaction price When the performance obligation will be satisfied 2. Prepare the required journal entry on the date of the sale of goods 13C Mostly cloudy (4) (12) (2) (7) ENG
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