Current Attempt in Progress

In $20$X$1,$ Sanchez Pepper Sauces, Inc. ran a promotional campaign in which customers could collect points from hot sauce purchases to redeem for various rewards. For $100$ points, customers received a premium gift. At December $31,20$X$1,$ customers have accumulated a significant number of points, but only about $20\%$ have been redeemed. Based on past experience, Sanchez expects $30\%$ of the points to be redeemed. How should Sanchez account for the costs associated with the unredeemed points in their $201$ financial statements?