Find what would the journal entries look like

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A local donut shop maintains a loyalty program for its customers who receive points for every coffee purchase. In fiscal 2020, the store made sales of $100,000 and awarded 5,000 points with a fair value of $5,000. The store estimates that approximately 90% of these points will eventually be redeemed by its members. The points expire in 5 years. Members did redeem 4,000 points during fiscal 2020.

Problem 1: What would the journal entries look like for 2020?

Reference no: EM132828406

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