E-commerce
Loyalty Points Redeemed on Purchase
A customer applies accumulated points to get a discount on their next order.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Loyalty Points Liability | Liability (-) | 15.00 | - |
| Cash / Stripe (Balance Due) | Asset (+) | 84.00 | - |
| Sales Revenue | Revenue (+) | - | 99.00 |
| Cost of Goods Sold | Expense (+) | 40.00 | - |
| Merchandise Inventory | Asset (-) | - | 40.00 |
💡 Accountant's Note
The points liability is converted to revenue when redeemed. The customer pays the difference in cash. Full COGS is recognized on the total sale price.
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