To increase sales, Concord Inc., a public company following IFRS, implemented a customer loyalty program...
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To increase sales, Concord Inc., a public company following IFRS, implemented a customer loyalty program that rewards a customer with one loyalty point for every $ 40 of merchandise purchased. Each point is redeemable for a $ 2 discount on any purchases of Concord merchandise in the next three years. After the program launched, during 2020, customers bought merchandise for $ 412,000 (all products are sold to provide a 30% gross profit) and earned 10,300 points redeemable for future purchases. The stand-alone selling price of the merchandise sold is $ 412,000. Based on prior experience with incentive programs like this, Concord expects 7,700 points to be redeemed related to these sales. Prepare the journal entries for cash sales including the issuance of loyalty points for Concord in 2020.
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