Part B. Beaver Limited is a retail company that sells sporting goods. The company has a...

Transcribed Image Text:

Part B. Beaver Limited is a retail company that sells sporting goods. The company has a customer loyalty program that allows customers to earn points based on sales made. These points can be accumulated and used for future purchases. One customer loyalty point is awarded for every $1 of purchases. During March 2023, the company recorded sales of $1,725,000 to customers who were accumulating points. The stand-alone value of these goods sold was $1,725,000. Beaver has also determined that each point has a fair value of $0.017. Required: a. What are the two performance obligations? b. Sale of Goods c. Customer Loyalty Program 1. Allocate the sales price of $1,725,000 to the two performance obligations Allocation to Performance obligation 1: $ Allocation to performance obligation 2: $ 2. Prepare the entry to record the sales (all cash) for the month of March 2023. Cash Revenue Loyalty Liability Debit 1,725,000 Credit Part B. Beaver Limited is a retail company that sells sporting goods. The company has a customer loyalty program that allows customers to earn points based on sales made. These points can be accumulated and used for future purchases. One customer loyalty point is awarded for every $1 of purchases. During March 2023, the company recorded sales of $1,725,000 to customers who were accumulating points. The stand-alone value of these goods sold was $1,725,000. Beaver has also determined that each point has a fair value of $0.017. Required: a. What are the two performance obligations? b. Sale of Goods c. Customer Loyalty Program 1. Allocate the sales price of $1,725,000 to the two performance obligations Allocation to Performance obligation 1: $ Allocation to performance obligation 2: $ 2. Prepare the entry to record the sales (all cash) for the month of March 2023. Cash Revenue Loyalty Liability Debit 1,725,000 Credit