A Clothing Store Maintains a Loyalty Program for Its Customers

question 53

Essay

A clothing store maintains a loyalty program for its customers.For every purchase,members receive points that do not expire.In fiscal 2016,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 2017.
Provide the necessary journal entries for fiscal 2015 and 2016.

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Definitions:

Sensory Neuron

A type of neuron responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Motor Neuron

A type of nerve cell that transmits signals from the brain and spinal cord to muscles, stimulating them to contract.

Effector Organ

An organ or tissue that reacts to a stimulus from the nervous system to produce a specific response.

Cauda Equina

The cauda equina is a bundle of spinal nerves and spinal nerve rootlets below the end of the spinal cord, resembling a horse's tail, which distributes nerve roots to the lower limbs and pelvic organs.