When a customer receives reward points that can be redeemed at a later date for selected merchandise, at what point is the reduction in revenue recorded?

• A :

  The full value of the reward points is recorded to Redemption Reward Expense at the time the points are redeemed.

• B :

  The full value of the reward points is recorded as a reduction to Revenue at the time of the sale.

• C :

  The anticipated redemption amount is estimated and recorded at the time of the original sale.

• D :

  The amount is determined by the actual points redeemed and is recorded at the time the points are redeemed.