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Can you please help me to solve this question and Answer 1-3? Question 1 Meadows Undone Inc. (MUI) produces and sells lawnmowers. To encourage sales
Can you please help me to solve this question and Answer 1-3?
Question 1 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 $51 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 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 55% of the end-consumers would take advantage of the rebate offer. (c) The actual redemption rate was 60%. REQUIRED 1. Prepare a summary journal entry to record the sales of the lawnmowers to the distributors during the promotional period. Assume that all sales were on credit. 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. 3. After recording all of the applicable journal entries, how much gross profit should have been reported by MUIStep by Step Solution
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