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 do not earn additional loyalty 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 10,600 points and sold additional product of $132,500, so it recorded $143,100 of revenue. The aggregate stand-alone selling price of the purchased products is $143,100. Eighty percent of sales were cash sales, and the remainder were credit sales. Required: 1. & 2. Prepare Supply Clubs journal entry to record July and August sales. During August, customers redeem loyalty points on $63,600 of merchandise. Seventy-five percent of those sales were for cash, and the remainder were credit sales.

Need help with recording August sales.

This was previously answered but was wondering how the expert got 80% and 85% when the problem has 20%, 60% and 75%.

Cash (debit) 63,600 * 80% * 75% = 38,160 (I got 38,160 by doing 63,600 * 60%)

Acct Recv (debit) 63,600 * 20% * 25% = 3,180

Deferred Revenue - Loyalty points (debit) 143,100 * 85% * 80% = 97,308

Sales Revenue (credit) 38,160 + 3,180 + 97, 308 = 138,648

When I enter those amounts it comes back as incorrect.