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ook ht nces 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 12,400 points and sold additional product of $155,000, so it recorded $167,400 of revenue. The aggregate stand-alone selling price of the purchased products is $167,400. Eighty 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 $74,400 of merchandise. Seventy-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. View transaction list Journal entry worksheet Record the July sales. Note: Enter debits before credits. Transaction General Journal Cash Accounts receivable Deferred revenue-loyalty points Sales revenue < Prev Debit 3 of 15 Credit Next >

ook ht nces 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 12,400 points and sold additional product of $155,000, so it recorded $167,400 of revenue. The aggregate stand-alone selling price of the purchased products is $167,400. Eighty 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 $74,400 of merchandise. Seventy-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. View transaction list Journal entry worksheet Record the July sales. Note: Enter debits before credits. Transaction General Journal Cash Accounts receivable Deferred revenue-loyalty points Sales revenue < Prev Debit 3 of 15 Credit Next >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ook ne nces 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 12,400 points and sold additional product of $155,000, so it recorded $167,400 of revenue. The aggregate stand-alone selling price of the purchased products is $167,400. Eighty 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 $74,400 of merchandise. Seventy-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. View transaction list Journal entry worksheet Record the July sales. Note: Enter debits before credits. Transaction General Journal Cash Accounts receivable Deferred revenue-loyalty points Sales revenue < Prev Debit 3 of 15 Credit Next >
Transcribed Image Text:ook ne nces 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 12,400 points and sold additional product of $155,000, so it recorded $167,400 of revenue. The aggregate stand-alone selling price of the purchased products is $167,400. Eighty 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 $74,400 of merchandise. Seventy-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. View transaction list Journal entry worksheet Record the July sales. Note: Enter debits before credits. Transaction General Journal Cash Accounts receivable Deferred revenue-loyalty points Sales revenue < Prev Debit 3 of 15 Credit Next >
pok nt nces 1. & 2. Prepare Supply Club's journal entry to record July and August sales. During August, custom $74,400 of merchandise. Seventy-five percent of those sales were for cash, and the remainder we Note: Do not round intermediate calculations. If no entry is required for a transaction/event, sel the first account field. View transaction list Journal entry worksheet < Record the August sales. Note: Enter debits before credits. Transaction Record entry General Journal Clear entry Debit Credit View general journal
Transcribed Image Text:pok nt nces 1. & 2. Prepare Supply Club's journal entry to record July and August sales. During August, custom $74,400 of merchandise. Seventy-five percent of those sales were for cash, and the remainder we Note: Do not round intermediate calculations. If no entry is required for a transaction/event, sel the first account field. View transaction list Journal entry worksheet < Record the August sales. Note: Enter debits before credits. Transaction Record entry General Journal Clear entry Debit Credit View general journal
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