Problem 6-4 (Static) Performance obligations; customer options for additional goods and services [LO6-2, 6-4, 6-5] 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 $135,400 and awarded 10,400 points. The aggregate stand-alone selling price of the purchased products is $135,000. 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 $60,000 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. No Transaction 1 1 Cash Accounts receivable Sales revenue Deferred revenue - loyalty points Answer is not complete. General Journal Debit Credit 108,000 27,000 135,400 X 1,248 2 2 Cash 36,000 Accounts receivable 12,000 Deferred revenue - loyalty points 48,000 Sales revenue 60,000