Problem $2-23$ IFRS$)$

Arianne Company, a grocery retailer, operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for groceries. The points have no expiry date.

During $2024,$ the sales amounted to P$7,000,000$ based on stand$-$alone selling price. During $2024,$ the entity granted $10,000$ points. But management expected that only $80\%$ or $8,000$ points will be redeemed. The stand alone selling price of each loyalty point was estimated at P$100.$

On December $31,2024,4,800$ points have been redeemed. In $2025,$ management revised its expectations and now expected that $90\%$ or $9,000$ points will be redeemed altogether. During $2025,$ the entity redeemed $2,400$ points.

Required:

Prepare journal entries for $2024$ and $2025.$