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How much of sales revenue should the airline recognize

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Question - Panda Company offers its customers points every time they fly with the airline. During the current fiscal year, the airline offered 1,000 points on a flight ticket that was paid for by a customer for $1,000 cash. The stand-alone value of the points is $110 and the value for the flight ticket is $990. Assume that the customer has not redeemed any points, how much of sales revenue should the airline recognize from the transaction?

Reference no: EM133109393

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