Coffee Caf opened for business on January 1, 2019. Coffee provides a customer reward program through use of a punch card. If the customer buys 5 coffees, their 6th coffee is free. Customers pay $3 for a cup of coffee. Coffee Caf reports under IFRS and coffee sales are material.

In January 2019, 2000 cups of coffee were sold and 100 ADDITIONAL free cups of coffee were redeemed so far under the program. (2100 cups of coffee provided in total.)

Based on industry data, 70% of all customers will ultimately redeem a free coffee under this type of program.

Required: Provide the journal entries for Coffee Caf for the sales and reward program redemptions for January. (Round calculation of amounts per unit (cup of coffee) to two decimal places $X.XX; and journal entries to nearest dollar.)