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Problem 1: DISCALCED BAREFOOTED NAKASAKASAKA Supermarket, Inc. awards customers loyalty points for their purchases. A customer is entitled to one point for every ?400 purchase. The points accumulated may be redeemed for awards in the form of appliances, electronics, groceries and other household items. DISCALCED estimates the stand-alone selling price of each point at ?4.00. During the period, DISCALCED made total sales of ?40M to cardholders. How much sales revenue is recognized?
Option 1: 400,000
Option 2: 40,000,000
Option 3: 39,600,000
Option 4: 0
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