complete part B

Sheridan Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2,2025 , customers purchase products for $250,000 (with a cost of $132,500 ) and earn 25,000 points redeemable for future purchases. Sheridan expects 20,300 points to be redeemed. Sheridan estimates a standalone selling price of $2.50 per point (or $62,500 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Sheridan concludes that the points are a separate performance obligation. (a) Determine the transaction price for the product and the customer loyalty points. eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Prepare the journal entries to record the sale of the product and related points on July 2,2025 . (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Prepare the journal entries to record the sale of the product and related points on July 2,2025 . (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Sheridan Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2,2025 , customers purchase products for $250,000 (with a cost of $132,500 ) and earn 25,000 points redeemable for future purchases. Sheridan expects 20,300 points to be redeemed. Sheridan estimates a standalone selling price of $2.50 per point (or $62,500 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Sheridan concludes that the points are a separate performance obligation. (a) Determine the transaction price for the product and the customer loyalty points. eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Prepare the journal entries to record the sale of the product and related points on July 2,2025 . (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Prepare the journal entries to record the sale of the product and related points on July 2,2025 . (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)