Company X orders raw materials for EUR $1,000$ and manages to obtain a discount of $15\%$ from one of its suppliers.

Once raw materials are received, defaults are noted by the warehouse manager. Company X intends a lawsuit against its supplier. Company C$$s lawyer estimates that Company C might be entitled to receive EUR $200.$ Decision from the court: the supplier needs to grant a rebate of EUR $150.$

Prepare the accounting journal entries for the purchase, for the suit and the rebate at the level of Company C$.$

Answer rating: 100% (QA)

Here are the accounting journal entries for the purchase the lawsuit an... View the full answer