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Question - Victory Mall grants loyalty awards to its customers. During 2020, it made sales aggregating to P5,000,000 of which P100,000 is allocated to the customer loyalty awards. During the year, 25,000 points were redeemed and at December 31, 2020 it expects that 90,000 points would be redeemed relating to 2020 sales.
During 2021, an additional 35,000 points awarded in 2019 were redeemed and the company revised its estimate of total points redemption for points granted in 2020 to 95,000 points.
Required - How much is the revenue to be recognized in 2021 relating to the customer loyaty awards.
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