Expected obligations arising from programs,such as frequent flyer miles,are usually recorded as a reduction in sales (in a contra-sales account)with a related liability.

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This is true. The expected obligations arising from programs, such as frequent flyer miles, are usually recorded as a reduction in sales with a related liability. This is because these programs represent a future cost that the company will incur as customers redeem their rewards or points. To account for this, the company records a contra-sales account to reduce revenue and a corresponding liability account to recognize the future obligation to customers.

Expected Obligations Arising from Programs,such as Frequent Flyer Miles,are Usually