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Question - Matcha Tea House opened for business on January 1, 2021. Matcha Tea House provides a customer reward program through use of a plastic key tag. If the customer buys 5 teas, their 6th tea is free. Customers pay $4 for a cup of tea. Matcha Tea House reports under IFRS and tea sales are material. In January, 4,500 cups of tea were sold for cash. An additional 180 free cups of tea were also served that were redeemed so far under the program. Based on industry data, 66 2/3% of all customers will ultimately redeem a free tea under Matcha Tea House's reward program.
a) What is the TOTAL revenue recorded by Matcha Tea House for January 2021?
b) What is the liability recorded relating to this program at January 31, 2021?
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