During the year, ABC launched a new loyalty program called the Movie Program (MP). Individuals can sign up for a loyalty card and earn 1 point for every movie ticket purchased. Seven points are required for a free movie. The program has been a big success, and 345,548 points were issued during 2021, with 25,152 free movies being awarded. Management expects that 14% of the points will never be redeemed (that is, 1 out of 7 points). On average, a movie ticket has a retail value of $10 and a total cost of $3. No journal entries have been recorded in the financial statements related to the MP.

Record the necessary journal entries of 2021 for the above.

Answer rating: 100% (QA)

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