P-Dog Inc Has a Loyalty Points Program Which Awards Two Customer

P-Dog Inc. has a loyalty points program which awards two customer loyalty points for every $100 of goods purchased. During the year, the company sold $200,000 of goods in the store and awarded 4,000 points which can be redeemed and used towards future purchases. The stand-alone selling price for the goods sold is $150,000. Based on past experience, P-Dog expects that only 80% of the points will actually be redeemed. The stand-alone selling price of the points is $1.50 per point. Based on the information provided, the amount of revenue that P-Dog will report on its statement of comprehensive income for the year would be:

A) $200,000.
B) $150,000.
C) $154,800.
D) $193,798.

Correct Answer:

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