Supply club inc sells a variety of paper products office

Assignment Help Accounting Basics

Reference no: EM13588076

Supply Club, Inc., sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2016 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 2016, the company records $135,000 of revenue and awards 125,000 loyalty 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.

Reference no: EM13588076

Questions Cloud

What is the molar concentration of sodium ions in a : question what is the molar concentration of sodium ions in a solution in which 75.02 g of sodium sulfate and 102.75 g

Abc company employs a periodic inventory system and sells : abc company employs a periodic inventory system and sells its inventory to customers for 20 per unit. abc company had

There is no product d being formed when substrate a is : consider the following biochemical pathwaya --1--gt b --2--gt c --3--gt da is the initial substrate and d is the final

What is the range of useful lives for buildings and for : what is the range of useful lives for buildings and for fixtures and equipment?does amazon write off this asset?

Supply club inc sells a variety of paper products office : supply club inc. sells a variety of paper products office supplies and other products used by businesses and individual

You are auditing a company that owns twenty percent of the : you are auditing a company that owns twenty percent of the voting common stock of another corporation and uses the

Clarks inc a shoe retailer sells boots in different styles : clarks inc. a shoe retailer sells boots in different styles. in early november the company starts selling sunboots to

At the end of the year 5000 of supplies remained on hand : at the end of the year 5000 of supplies remained on hand. record the adjustment necessary at december 31 2005. how

Suppose that 1942 j of heat energy is required to : suppose that 194.2 j of heat energy is required to completely vaporize 3.3 g of a pure liquid. if the molar mass of the

User Account

All Pages