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 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 earn one loyalty point for each dollar of goods

purchased, but do not earn additional loyalty points for purchases that are made by redeeming loyalty points. Based on

past experience, Supply Club estimates a $60\%$ probability that any point issued will be redeemed for the discount. During

July $2024,$ the company redeemed $14,000$ points and sold additional product of $$175,000,$ so it recorded of revenue of

$$189,000.$ The aggregate stand$-$alone selling price of the purchased products is $$189,000.$ Seventy$-$five percent of sales

were cash sales, and the remainder were credit sales.

Required:

& $2.$ Prepare Supply Club's journal entry to record July and August sales. During August, customers redeem loyalty

points on $$84,000$ of merchandise. Seventy percent of those sales were for cash, and the remainder were credit sales.

Note: Do not round intermediate calculations. If no entry is required for a transaction$/$event$,$ select $"$No journal entry

required" in the first account field.

Journal entry worksheet

Note: Enter debits before credits.