Read Note 2(d)(ix) to Rogers' financial statements. What are loyalty programs and why do companies offer them

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Read Note 2(d)(ix) to Rogers' financial statements. What are loyalty programs and why do companies offer them to customers? Who pays for the "free" goods and services a customer receives from a loyalty program and how/when are they paid for? How does Rogers account for amounts paid for goods and services that pertain to loyalty awards that will received later? What journal entry does Rogers make when a purchase is made that has loyalty benefits associated with it? What challenges and difficulties does Rogers face in accounting for the amount that should be reported on the balance sheet pertaining to future loyalty benefits?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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