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a- Omar Co. enters into a contract with Amal Co. to purchase 500 machines during 2022. The machines are priced at $3000 each (with a
a- Omar Co. enters into a contract with Amal Co. to purchase 500 machines during 2022. The machines are priced at $3000 each (with a cost of $2500 each), and Amal provides a 6% volume discount if Omar Co. purchases at least 300 machines. Based on prior experience with the transactions with Omar Co., the Co. will meet the discount threshold. On March 17, 2022, Amal Co. sold and delivered 200 machines to Omar Co. and recorded sales net. On May 1, 2022 Amal Co. received the payment from Omar Co. (assume Omar Co. fails to meet the discount threshold). Prepare the needed entries to record the previous transactions in Amal books during 2022. 
a- Omar Co. enters into a contract with Amal Co. to purchase 500 machines during 2022. The machines are priced at $3000 each (with a cost of $2500 each), and Amal provides a 6% volume discount if Omar Co. purchases at least 300 machines. Based on prior experience with the transactions with Omar Co., the Co. will meet the discount threshold. On March 17, 2022, Amal Co. sold and delivered 200 machines to Omar Co. and recorded sales net. On May 1,2022 Amal Co. received the payment from Omar Co. (assume Omar Co. fails to meet the discount threshold)
a- Omar Co. enters into a contract with Amal Co. to purchase 500 machines during 2022. The machines are priced at $3000 each (with a cost of $2500 each), and Amal provides a 6% volume discount if Omar Co. purchases at least 300 machines. Based on prior experience with the transactions with Omar Co., the Co. will meet the discount threshold. On March 17, 2022, Amal Co. sold and delivered 200 machines to Omar Co. and recorded sales net. On May 1, 2022 Amal Co. received the payment from Omar Co. (assume Omar Co. fails to meet the discount threshold).
Prepare the needed entries to record the previous transactions in Amal books during 2022.
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Financial Accounting The Impact On Decision Makers An Alternative To Debits And Credits
Authors: Gary A. Porter, Curtis L. Norton
4th Edition
0324272669, 978-0324272666
