In an effort to stimulate lagging sales of its XLT converter, Rchris Enterprises Corp. implemented a manufacturer’s rebate program at the beginning of 2020. Customers that purchased an XLT converter during the year were entitled to a $50 rebate providing that they submitted an application that included a copy of the sales receipt and the UPC code.

During the year, Rchris sold 20,000 converters for $600 cash each. The company only provided rebates to 30% of the purchasers, however, as it routinely rejected applications that were not properly supported by the required documentation. The cost of manufacturing the XLT converter is $350 per unit. The rebate cheques were all mailed on January 15, 2021. Required: a. Prepare summary journal entries to record revenue in 2020. b. Prepare summary journal entries to record the issuance of the rebate cheques in 2021.

Required:

a. Prepare summary journal entries to record revenue in 2020.
b. Prepare summary journal entries to record the issuance of the rebate cheques in 2021.