Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and

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Supply Club, Incorporated, sells a variety of paper products,office supplies, and other products used by businesses andindividual consumers. During July 2024, it started a loyaltyprogram through which qualifying customers can accumulate pointsand redeem those points for discounts on future purchases.Redemption of a loyalty point reduces the price of one dollar offuture purchases by 20% (equal to 20 cents). Customers do not earnadditional loyalty points for purchases on which loyalty points areredeemed. Based on past experience, Supply Club estimates a 60%probability that any point issued will be redeemed for thediscount. During July 2021, the company redeemed 10,000 points andsold additional product of $125,000, so it recorded $135,000 ofrevenue. The aggregate stand-alone selling price of the purchasedproducts is $135,000. Eighty percent of sales were cash sales, andthe remainder were credit sales.
Required:
1. & 2. Prepare Supply Club’s journalentry to record July and August sales. During August, customersredeem loyalty points on $60,000 of merchandise. Seventy-fivepercent of those sales were for cash, and the remainder were creditsales.
Note: Do not round intermediate calculations. If noentry is required for a transaction/event, select "No journal entryrequired" in the first account field.