One-Stop Department Store has a loyalty program where customers are given One-Stop “Money” for cash or debit card purchases. The amount they receive is equal to 2% of the pre-tax sales total. Customers can use the One-Stop Money to pay for part or all of their next purchase at One-Stop Department Store. On July 3, 2014, Judy Wishloff purchases merchandise for $200. She uses $30 of One-Stop Money that she has from earlier purchases, and pays for the rest of the purchase with cash. What entries will One-Stop Department Store record for this transaction? Ignore taxes.(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
July 3
(To record sales and the redemption of rewards.)
July 3
(To record the estimated rewards that will be redeemed.)