P-Dog Inc Has a Loyalty Points Program Which Awards Two Customer

question 107

Multiple Choice

P-Dog Inc. has a loyalty points program which awards two customer loyalty points for every $100 of goods purchased. During the year, the company sold $200,000 of goods in the store and awarded 4,000 points which can be redeemed and used towards future purchases. The stand-alone selling price for the goods sold is $150,000. Based on past experience, P-Dog expects that only 80% of the points will actually be redeemed. The stand-alone selling price of the points is $1.50 per point. Based on the information provided, the amount of revenue that P-Dog will report on its statement of comprehensive income for the year would be:

• A) $200,000.
• B) $150,000.
• C) $154,800.
• D) $193,798.

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Definitions:

Taste Cells

Specialized sensory cells responsible for detecting taste stimuli and converting them into neural signals for perception.

Sense of Smell

The ability to detect and interpret odors through specialized sensory cells in the nasal cavity, also known as olfaction.

Rotational Equilibrium

Maintenance of balance when the head and body are suddenly moved or rotated.

Ampullae

Small bulbous structures, especially in the context of the ampullae of Lorenzini in sharks, sensing electric fields and temperature.