Swifty Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2020, customers purchase products for $270,000 (with a cost of $140,400) and earn 27.000 points redeemable for future purchases. Swifty expects 21,500 points to be redeemed. Swifty estimates a standalone selling price of $2.50 per point (or $67,500 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Swifty concludes that the points are a separate performance obligation (a) Your answer is partially correct. Determine the transaction price for the product and the customer loyalty points, Product Purchases 216000 Loyalty Points 13500 Total Transaction Price $ 22990 Prepare the journal entries to record the sale of the product and related points on July 2, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold) e Textbook and Media List of Accounts Save for later Attempts: 0 of 3 used Submit Answer (c) At the end of the first reporting period (July 31, 2020). 8,600 loyalty points are redeemed, Swifty continues to expect 21.500 loyalty points to be redeemed in total. Determine the amount of loyalty point revenue to be recognized at July 31, 2020. Amount of Loyalty Point Revenue