Sales rebate Goodyear Tire & Rubber Company (GT) published the following promotion on its website for the purchase of Wrangler Trail Runner AT tires: $25 back with purchase of 4 tires by rebate via MasterCard prepaid card. Assume that Jeanne Blanchard purchases four Wrangler Trail Runner AT tires for her jeep at a list price of $120 per tire with free installation plus 5% sales tax. a. When Goodyear posts the rebate on its website, should it record an estimated rebate liability? No ✓ b. Assuming Jeanne pays with her VISA, how much would be charged to her credit card? 126 X c. How much would Goodyear record as sales (revenue) from the sale to Jeanne? Assume that Jeanne redeems the $25 rebate. 101 X

Sales rebate Goodyear Tire & Rubber Company (GT) published the following promotion on its website for the purchase of Wrangler Trail Runner AT tires: $25 back with purchase of 4 tires by rebate via MasterCard prepaid card. Assume that Jeanne Blanchard purchases four Wrangler Trail Runner AT tires for her jeep at a list price of $120 per tire with free installation plus 5% sales tax. a. When Goodyear posts the rebate on its website, should it record an estimated rebate liability? No ✓ b. Assuming Jeanne pays with her VISA, how much would be charged to her credit card? 126 X c. How much would Goodyear record as sales (revenue) from the sale to Jeanne? Assume that Jeanne redeems the $25 rebate. 101 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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