July and August

Supply Ciub, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases, Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers do not eam additional loyalty points for purchases on which loyaity points are redeemed Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the cliscount. During July 2021 , the company redeemed 10,800 points and sold additional product of $135,000, so it recorded $145,800 of revenue. The aggregate stand-alone seling price of the purchased products is $145,800. Seventy percent of sales were cash sales, and the remainder were credit sales. Required: 1. \& 2. Prepare Supply Club's joumal entry to tecord July and August sales, During August, customers redeem loyalty points on $64,800 of merchandise. Sixty-five percent of those sales were for cash, and the remainder were credit sales. Note: Do not round Intermediate caiculations, if no entry is required for o transoction/event, select "No Journal entry required" in the first account fleid. Journal entry worksheet Supply Club. Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2024 . It started a loyalty program through which qualitying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point recuces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers do not eam additonal loyaity points for purchases on which loyalty points are redeemed. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2021, the company redeemed 10,800 points and sold additional product of $135.000, so it recorded $145,800 of revenue. The aggregate stand-alone seling pnce of the purchased products is $145,800. Seventy percent of sales were cash sales, and the remainder were credit sales: Required: 1. \& 2. Prepare Supply Club's joumal entry to record July and August sales. Duning August, customers redeem loyalty points on $64,800 of merchandise. Sixty-five percent of those sales were for cash, and the remainder were crecit sajes Note: Do not round intermediote colculations. If no entry is requifred for a transaction/event, select "No journal entry required" in the first account fleld. Journal entry worksheet