Pizza Pie Inc. implemented several marketing initiatives including a loyalty program for its customers and various online promotions in 2021.

Pizza Pie Inc. implemented several marketing initiatives including a loyalty program for its customers and various online promotions in 2021.

The loyalty program specified that for customers who have registered loyalty accounts, they will receive points towards future meal deliveries with every purchase made. These points expire after two years. Loyalty points are not earned on fist time purchases.

• In 2021, the company sold for $540,000 and awarded 90,000 points that have a fair value of $45,000. PPI estimated that approximately 60% of these points would be redeemed by members prior to expiry. Cost of goods sold related to these sales was $210,000.
• Members redeemed 10,000 points in 2021, 35,000 points in fiscal 2022 and 18,000 points in 2023 with the remaining points expiring.

The online promotion that was implemented at the end of 2021 was a free appetizer offered with any order above $25. The average selling price of appetizers is $12.00 with a cost of $6.00. Management estimated at the end of 2021 that 100 offers would be redeemed in 2022.  In 2022, 150 offers were redeemed. The total sales before the discount offer amounted to $50,000. The total discount offered for free appetizers was $1,800. Cost of goods sold on these sales was $20,000 including the cost of $900 related to the appetizers.

Required:

2023. Prepare ALL of the necessary journal entries for PPI related to the sales, cost of goods sold and loyalty points in 2021, 2022, and 2023. If no entry is required, indicate NO ENTRY

Prepare ALL of the necessary journal entries for PPI related to the sales, cost of goods sold and free appetizers promotional offer in 2021 and 2022. If no entry is required, indicate NO ENTRY