An entity offers a customer loyalty program. The program operates as follows: for each $1 spent, the customer earns one point. For each 2.000 points earned, the customer receives a $15 voucher than can be used against future purchases. Management estimates that the voucher redemption rate will be 70%. Data for the first two years of the program are as follows:

Year

20x5 20x6

Sales

20x5: $2,750,000

20x6: 4,500,000

Vouchers Redeemed

20x5: 1,100

20x6: 1,600

Required

Prepare the journal entries for the customer loyalty program for the two years.