A Clothing Store Maintains a Loyalty Program for Its Customers

question 70

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:

Task-Oriented

describes a focus or approach that prioritizes the completion of specific tasks or objectives over interpersonal relationships.

Listening Style

The preferred way an individual processes and interprets auditory information, which can influence comprehension and communication effectiveness.

Positive Communication

A method of interaction that is constructive, encouraging, and aimed at building understanding and good relations.

Information Overload

The state of being overwhelmed by the vast amount of information available, making it difficult to process or make decisions.