Retail
Loyalty Points Redeemed on Purchase
Customer uses accumulated points to get a discount on their next purchase.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Hand | Asset (+) | 101.20 | - |
| Loyalty Points Liability | Liability (-) | 15.00 | - |
| Sales Revenue | Revenue (+) | - | 100.00 |
| VAT Output Tax Payable (16%) | Liability (+) | - | 16.20 |
💡 Accountant's Note
Redemption converts the deferred points liability into earned revenue. The customer pays the balance in cash and the transaction is closed.
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Expert Analysis by Qusai Ahmad
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