Question: Alpha Corp. is a major supplier to Beta Corp. To encourage Beta to buy more, Alpha offers Beta an annual volume rebate of 1% of

Alpha Corp. is a major supplier to Beta Corp. To encourage Beta to buy more, Alpha offers Beta an annual volume rebate of 1% of total invoiced purchases exceeding $100,000. Beta's invoiced purchases in 2014 totaled $110,000. Prepare the journal entry to record the volume rebate for 2014 in the books of
(a) Alpha and
(b) Beta.

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