P & G Auto Parts sells parts to AAA Car Repair during 2014. P&G offers rebates of
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Question:
P & G Auto Parts sells parts to AAA Car Repair during 2014. P&G offers rebates of 2% on purchases up to $30,000 and 3% on purchases above $30,000 if the customer's purchases for the year exceed $100,000. In the past, AAA normally purchases $150,000 in parts during a calendar year. On March 25, 2014, AAA Car Repair purchased $37,000 of parts.
The journal entry to record the purchase includes a:
A). credit to Sales Revenue for $35,890
B). credit to Sales Revenue for $36,400
C). debit to Accounts Receivable for $37,000
D). debit to Accounts Receivable for $36,400
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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