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If a company offers a 50$ credit to an existing customer for referring a friend and if the new customer buys something the company will

If a company offers a 50$ credit to an existing customer for referring a friend and if the new customer buys something the company will give the existing customer a 50$ credit to their next purchase. How would the company record this - as a reduction of revenue or a marketing expense and when would the comapny record the referral credit and what is the journal entry for it?

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