Caramel Company sells parts to Cotton Co during 2023. Caramel offers rebates of 2% on purchases up to $60,000 and 3% on purchases above $60,000 if the customer's purchases for the year exceed $200,000. In the past Cotton co normally purchases $300,000 in parts during a calendar year.On March 25, 2023, Cotton Co purchased $74,000 of parts. The journal entry to record the purchase includes
Caramel Company sells parts to Cotton Co during 2023. Caramel offers rebates of 2% on purchases up to $60,000 and 3% on purchases above $60,000 if the customer's purchases for the year exceed $200,000. In the past Cotton co normally purchases $300,000 in parts during a calendar year.On March 25, 2023, Cotton Co purchased $74,000 of parts. The
Journal Entries:
Recording the transactions in the books of accounts is called journal entries. In this question, we going to prepare a journal entry for sales.
Details Given in the question:
Rebate for purchases up to $60,000 = 2%
Rebate for purchases above $60,000 if the customer made purchases exceeding $200,000 in the year = 3%
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