Please help me Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individualconsumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeemthose points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by20% (equal to 20 cents) Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed Basedon past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July2021, the company redeemed 10,800 points and sold additional product of $135,000, so it recorded $145,800 of revenue. Theaggregate stand-alone selling price of the purchased products is $145,800. Seventy percent of sales were cash sales, and theremainder 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$64,800 of merchandise. Sixty-five 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 transaction/event, select "No journal entry required inthe first account field.View transaction listJournal entry worksheet<1Record the July sales.2Note: Enter debits before credits.Transaction1Record entryGeneral JournalCashAccounts receivableSales revenueDeferred revenue-loyalty pointsClear entryDebitCreditView general journal Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individualconsumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeemthose points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by20% (equal to 20 cents) Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Basedon past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July2021, the company redeemed 10,800 points and sold additional product of $135,000, so it recorded $145,800 of revenue. Theaggregate stand-alone selling price of the purchased products is $145,800. Seventy percent of sales were cash sales, and theremainder 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$64,800 of merchandise. Sixty-five percent of those sales were for cash, and the remainder were credit salesNote: Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No Journal entry required" inthe first account field.View transaction listtransactJournal entry worksheet<2Record the August sales.Note: Enter debits before credas.Transaction2Record entryGeneral JournalClear entryDebitCreditView general journal

1. Date Particulars Debit ($) Credit ($) xxx Cash (145800 x 70%) 102,060 Accounts…

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 10,800 points and sold additional product of $135,000, so it recorded $145,800 of revenue. The aggregate stand-alone selling price of the purchased products is $145,800. Seventy 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 $64,800 of merchandise. Sixty-five 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 transaction/event, select "No Journal entry required" In the first account field.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q