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Shoes on First sells a variety of footwear products. During July 2016 it started a...

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Accounting

Shoes on First sells a variety of footwear products. 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 10% (equal to 10 cents). Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Based on past experience, Shoes on First estimates a 60% probability that any point issued will be redeemed for the discount. During July 2016, the company sells shoes for $200,000 and awards 300,000 loyalty points. The aggregate stand-alone selling price of the purchased products is $200,000. Eighty percent of sales were cash sales and the remainder were credit sales.

Prepare Shoes on Firsts journal entry to record July sales (ignore COGS and round to the nearest dollar)

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