Question: Hello tutor, I need an answer and solution for this one . Thank you Problem 2-17 (IFRS) Erika Company operates a customer loyalty program. The

Hello tutor, I need an answer and solution for this one . Thank you

Problem 2-17 (IFRS) Erika Company operates a customer loyalty program. The entity grants loyalty points for goods purchased. The loyalty points can be used by the customers in exchange for goods of the entity. The points have no expiry date. During 2011, the entity issued 50,000 award credits and expects that 80% of these award credits shall be redeemed. The fair value of the of the award credits is reliably measured at P2,000,000. In 2011, the entity sold goods to customers for a total consideration of P9,000,000 including the fair value of the award credits. The award credits redeemed and the. total award credits expected to be redeemed each year are as follows: Redeemed Expected to be redeemed 2011 15,000 80% 2012 7,950 85% 2013 2,550 85% 2014 15,000 90% Required Prepare all indicated entries from 2011 to 2014 in connection with the customer loyalty program

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