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Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2 0 2
Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by
businesses and individual consumers. During July 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 equal to
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 probability that any point issued will be redeemed for the discount. During July
the company redeemed points and sold additional product of $ so it recorded of revenue of
$ The aggregate standalone selling price of the purchased products is $ Eighty percent of
sales were cash sales, and the remainder were credit sales.
Required:
& Prepare Supply Club's journal entry to record July and August sales. During August, customers
redeem loyalty points on $ of merchandise. Seventyfive 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 transactionevent select No
journal entry required" in the first account field.
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