Retail
Loyalty Points Breakage (Expired Points)
Recognizing revenue from loyalty points that have expired without being redeemed.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Loyalty Points Liability | Liability (-) | 2,500.00 | - |
| Other Income (Points Breakage) | Revenue (+) | - | 2,500.00 |
💡 Accountant's Note
Points that pass their expiry date without redemption are an obligation that no longer exists. The liability is released to Other Income using historical expiry rate assumptions.
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