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A Clothing Store Maintains a Loyalty Program for Its Customers

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Essay

A clothing store maintains a loyalty program for its customers.Members receive points for every purchase which do not expire.In fiscal 2012,the store made sales of $1 million and awarded 50,000 points that have a fair value of $50,000.The company estimates that approximately 75% of these points will be redeemed by members.Members redeemed 10,000 points in fiscal 2013.
Provide the necessary journal entries for fiscal 2012 and 2013.


Definitions:

Dissociative Amnesia

A sudden loss of memory for important personal information that is too extensive to be due to normal forgetting.

Conversion Disorder

A mental condition where psychological stress is expressed as physical symptoms, without an apparent physical cause, previously known as hysteria.

Bipolar Disorder

A mental health disorder marked by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Preparedness

The state of being ready and able to deal with future events or emergencies.

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