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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.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 2016 and 2017.


Definitions:

Stewardship

The responsible overseeing and protection of something considered worth caring for and preserving, often related to environmental and natural resources.

Technological-Economic Growth

The expansion of economic activity and advancements in society driven by technological innovation and increased production efficiency.

Market-Based Competition

The rivalry among businesses to attract customers and achieve higher sales and profits within a market economy.

Life-Centred Worldview

A perspective that values all life forms, advocating for the consideration and preservation of ecosystems and biodiversity in decision-making processes.

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