Wildhorse Company sells goods to Sheffield Company during 2023. It offers Sheffield the following rebates based on total sales to Sheffield. If total sales to Sheffield are 11,000 units, it will grant a rebate of 2%. If it sells up to 21,200 units, it will grant a rebate of 4%. It if sells up to 28,000 units, it will grant a rebate of 6%. In the first quarter of the year, Wildhorse sells 11,600 units to Sheffield, on account, at a sales price of $116,000. Based on past experience, Wildhorse has sold over 40,000 units to Sheffield, and these sales normally take place in the third quarter of the year. (a) Your answer is partially correct Prepare the journal entries including any rebates that Wildhorse should make to record the sale, on account, of the 11,600 units in the first quarter of the year assuming Wildhorse follows IFRS. Ignore any cost of goods sold entry. (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 O for the amounts List all dehit entries befor

Principles of Accounting Volume 2
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Chapter7: Budgeting
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Account Titles and Explanation
Accounts Receivable
Sales Revenue
(To record sale on account)
Refund Liability
Accounts Receivable
(To record rebate)
Debit
Credit
000
Transcribed Image Text:Account Titles and Explanation Accounts Receivable Sales Revenue (To record sale on account) Refund Liability Accounts Receivable (To record rebate) Debit Credit 000
Wildhorse Company sells goods to Sheffield Company during 2023. It offers Sheffield the following rebates based on total sales to
Sheffield. If total sales to Sheffield are 11,000 units, it will grant a rebate of 2%. If it sells up to 21,200 units, it will grant a rebate of 4%.
It if sells up to 28,000 units, it will grant a rebate of 6%. In the first quarter of the year, Wildhorse sells 11,600 units to Sheffield, on
account, at a sales price of $116,000. Based on past experience, Wildhorse has sold over 40,000 units to Sheffield, and these sales
normally take place in the third quarter of the year.
(a)
Your answer is partially correct.
Prepare the journal entries including any rebates that Wildhorse should make to record the sale, on account, of the 11,600 units
in the first quarter of the year assuming Wildhorse follows IFRS. Ignore any cost of goods sold entry. (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 O for the amounts. List all debit entries before credit entries)
Transcribed Image Text:Wildhorse Company sells goods to Sheffield Company during 2023. It offers Sheffield the following rebates based on total sales to Sheffield. If total sales to Sheffield are 11,000 units, it will grant a rebate of 2%. If it sells up to 21,200 units, it will grant a rebate of 4%. It if sells up to 28,000 units, it will grant a rebate of 6%. In the first quarter of the year, Wildhorse sells 11,600 units to Sheffield, on account, at a sales price of $116,000. Based on past experience, Wildhorse has sold over 40,000 units to Sheffield, and these sales normally take place in the third quarter of the year. (a) Your answer is partially correct. Prepare the journal entries including any rebates that Wildhorse should make to record the sale, on account, of the 11,600 units in the first quarter of the year assuming Wildhorse follows IFRS. Ignore any cost of goods sold entry. (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 O for the amounts. List all debit entries before credit entries)
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