Crane Ltd. sells goods to Maxx Corporation during the calendar year ending December 31, 2023. Maxx is a key customer to Crane and a volume discount scheme has been established to strengthen the relationship further. The volume discount scheme is as follows: for sales for the year of 4,000 units, a discount of 4% is granted; for sales for the year reaching 4,970 units, a discount of 6% will be granted; and, finally, if sales for the year reach 8,180 units, a discount of 7% will be granted. For the first half of the year, Crane sold to Maxx, on account, 3,700 units at a sales price of $133,200. Because the second half of the year is slower for sales, it has been Crane's experience that sales to Maxx for the year will be 6,390 units.

Prepare the journal entries including any volume discount rebates that Crane should make to record the sale on account of 3,700 units for the first half of the year assuming Crane follows IFS. Ignore any cost of goods sold entry.

Account Titles and Explanation Debit Credit (To record sales on account) (To record discount rebate)