Brogan Inc. has just sold $70,000 of goods to Miller Industries. Based on Miller's past purchase...

 

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Brogan Inc. has just sold $70,000 of goods to Miller Industries. Based on Miller's past purchase history, Brogan assumes Miller will make enough purchases over the course of the year to qualify for a 3% volume discount. Thus, Brogan records a credit to Sales Revenue of $67,900. If Miller later fails to meet the discount threshold, then Brogan will need to O credit Accounts Receivable for $2,100. O debit Sales Discounts Earned for $2,100. O debit Cash for $2,100. O credit Sales Discounts Forfeited for $2.100. Brogan Inc. has just sold $70,000 of goods to Miller Industries. Based on Miller's past purchase history, Brogan assumes Miller will make enough purchases over the course of the year to qualify for a 3% volume discount. Thus, Brogan records a credit to Sales Revenue of $67,900. If Miller later fails to meet the discount threshold, then Brogan will need to O credit Accounts Receivable for $2,100. O debit Sales Discounts Earned for $2,100. O debit Cash for $2,100. O credit Sales Discounts Forfeited for $2.100.

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