On February 1, 2020, Swifty Ltd. began selling electric scooters that it purchased exclusively from Ionone Motors Inc. Ionone Motors offers volume rebates based on the volume of annual sales to its customers and calculates and pays the rebates at its fiscal year end, December 31. Swifty has a September fiscal year end and uses a perpetual inventory system. The rebate offer that Swifty received is for a $75 rebate on each scooter that is purchased in excess of 150 units in the calendar year, ending December 31. An additional rebate of $30 is given for all units purchased in excess of 175 units in the same year. By September 30, 2020, Swifty had purchased 200 units from Ionone Motors and had sold all but 35. Although it only made its first purchase on February 1, 2020, Swifty expects to purchase a total of 280 electric scooters from Ionone Motors by December 31, 2020. Before arriving at the estimate of 280 electric scooters, Swiftys management looked carefully at trends in purchases by its competitors and the strong market for sales of electric scooters in the coming months; sales are especially strong among environmentally conscious customers in suburban areas. Management is very confident the 280 electric scooters will be purchased by December 31, 2020. Assuming that Swifty follows the reporting requirements under ASPE, answer the following questions.

Part 1

Calculate the amount of any accrued rebate to be recorded by Swifty at September 30, 2020, assuming that the rebate is not discretionary and that management has a high degree of confidence in its estimate of the amount of purchases that will occur by December 31, 2020. (Round per unit rate to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 5,275.)

Accrued rebate $

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