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 $2024,$ the company recorded revenue of $$156,600$ and awarded $11,600$ points. The aggregate stand$-$alone selling price of the purchased products is $$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.