Question
P & G Auto Parts sells parts to Cullumber Car Repair during Year 18. P&G offers rebates of 1% on the first $60000 of purchases
"P & G Auto Parts sells parts to Cullumber Car Repair during Year 18. P&G offers rebates of 1% on the first $60000 of purchases and 2% on purchases over $60000 if the customer s purchases for the year exceed $200000. In the past, Cullumber normally purchases $300000 in parts during a calendar year. On March 25, Year 18, Cullumber Car Repair purchased $86000 of parts. The journal entry to record the purchase includes a"
debit to Accounts Receivable for $86000. | ||
debit to Accounts Receivable for $85400. | ||
credit to Sales Revenue for $85400. | ||
credit to Sales Revenue for $84880. |
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