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    Phee Siwakorn
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    The document shows the financial transactions for a loyalty points program over 3 years from 2020 to 2022. In 2020, the program had $20 million in cash, $19.91 million in sales revenue, and awarded 50 million points with an expected 60% redemption rate of 30 million points. In 2021 and 2022, customers redeemed points for $20 premiums, reducing the deferred revenue and increasing the premium expense each year.

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    The document shows the financial transactions for a loyalty points program over 3 years from 2020 to 2022. In 2020, the program had $20 million in cash, $19.91 million in sales revenue, and awarded 50 million points with an expected 60% redemption rate of 30 million points. In 2021 and 2022, customers redeemed points for $20 premiums, reducing the deferred revenue and increasing the premium expense each year.

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    © All Rights Reserved
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    6 views2 pages

    22

    Uploaded by

    Phee Siwakorn
    The document shows the financial transactions for a loyalty points program over 3 years from 2020 to 2022. In 2020, the program had $20 million in cash, $19.91 million in sales revenue, and awarded 50 million points with an expected 60% redemption rate of 30 million points. In 2021 and 2022, customers redeemed points for $20 premiums, reducing the deferred revenue and increasing the premium expense each year.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    2020

    Cash 20,000,000 Deferred revenue $ 90,000


    Sales revenue 19,910,000 Awarded Points 50,000,000 points
    Deferred revenue 90,000 Expected redemption 60%
    Points to be redeemed 30,000,000 points
    Cost of goods sold 16,000,000
    Inventory 16,000,000 1 point has value = $90000/30000000 = $ 0.003

    Inventory of premiums 60,000


    Cash 60,000
    2021 Deferred revenue 30,000
    Sales revenue 30,000
    (Customers redeemed 10,000,000 points.)
    Premium expense 20,000
    Inventory of premiums 20,000
    (Premium = 1,000 blenders*$20)
    2022 Deferred revenue 27,000
    Sales revenue 27,000
    (Customers redeemed 9,000,000 points.)
    Premium expense 18,000
    Inventory of premiums 18,000
    (Premium = 900 blenders*$20)

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