Question: The text identified three primary methods of offering awards under customer loyalty programs: 1. The company offers awards that it supplies itself. 2. The business

The text identified three primary methods of offering awards under customer loyalty programs: 

1. The company offers awards that it supplies itself. 

2. The business offers awards supplied by an outside party. 

3. The firm offers its customers a choice of receiving awards from its own program or those of a third party. 


Required:

a. When is revenue recognized for the award portion of sales under the first two methods? 

b. How is the price charged for the good or service in the underlying transaction apportioned between sales revenue and awards revenue.

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