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 $11,600$ points and sold additional product of $$145,000,$ so it recorded of revenue of $$156,600.$ The aggregate stand$-$alone selling price of the purchased products is $$156,600.$ Seventy$-$five percent of sales were cash sales, and the remainder were credit sales.

Required:

$1.$ & $2.$ Prepare Supply Club$$s journal entry to record July and August sales. During August, customers redeem loyalty points on $$69,600$ of merchandise. Seventy percent of those sales were for cash, and the remainder were credit sales.