Jet Fuel Ltd. has a customer rewards program. For every litre of
gas Jet Fuel sells, the customer is awarded one point. Each point
is worth $0.10 off the purchase of future goods.
During the month of January, Jet Fuel had gas sales of $172,000
and sold 144,000 litres of gas. Jet Fuel estimates 60% of the
points will be redeemed. During February, the actual value of the
points redeemed is $7,250.
Instructions
a) Prepare the journal entry for the...