Meadows Undone Inc. (MUI) produces and sells lawnmowers. To encourage sales of a new type of...

 

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Meadows Undone Inc. (MUI) produces and sells lawnmowers. To encourage sales of a new type of mower, MUI offered a rebate program to end-consumers. The rebate is $50 per mower and can be claimed online. Additional information is as follows: (a) During the promotional period, MUI sold 10,000 mowers to distributors (wholesalers) who offered the mail-in rebate to their end-consumers. The wholesale price was $350 per unit while the cost of goods sold was $185 per unit. The distributors sold the units to end-consumers at an average price of $425 per unit. (b) MUI estimated that 60% of the end-consumers would take advantage of the rebate offer. (c) The actual redemption rate was 55%. REQUIRED 1. Prepare a summary journal entry to record the sales of the lawnmowers to the distributors during the promotional period. 2. Prepare a summary journal entry to record the receipts of the rebate claims from the end-consumers and the related payment of the rebate amounts. Meadows Undone Inc. (MUI) produces and sells lawnmowers. To encourage sales of a new type of mower, MUI offered a rebate program to end-consumers. The rebate is $50 per mower and can be claimed online. Additional information is as follows: (a) During the promotional period, MUI sold 10,000 mowers to distributors (wholesalers) who offered the mail-in rebate to their end-consumers. The wholesale price was $350 per unit while the cost of goods sold was $185 per unit. The distributors sold the units to end-consumers at an average price of $425 per unit. (b) MUI estimated that 60% of the end-consumers would take advantage of the rebate offer. (c) The actual redemption rate was 55%. REQUIRED 1. Prepare a summary journal entry to record the sales of the lawnmowers to the distributors during the promotional period. 2. Prepare a summary journal entry to record the receipts of the rebate claims from the end-consumers and the related payment of the rebate amounts.