Question $4$ of $13$

Oriole Company sells goods to Blue Spruce Company during $2023.$ It offers Blue Spruce the following rebates based on total sales to

Blue Spruce. If total sales to Blue Spruce are $7,600$ units, it will grant a rebate of $2\%.$ If it sells up to $19,200$ units, it will grant a rebate

of $4\%.$ It if sells up to $30,400$ units, it will grant a rebate of $6\%.$ In the first quarter of the year, Oriole sells $11,400$ units to Blue Spruce,

on account, at a sales price of $$114,000.$ Based on past experience, Oriole has sold over $40,000$ units to Blue Spruce, and these sales

normally take place in the third quarter of the year.

$($a$)$

Prepare the journal entries including any rebates that Oriole should make to record the sale, on account, of the $11,400$ units in the

first quarter of the year assuming Oriole follows IFRS. Ignore any cost of goods sold entry. $($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for

the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$($To record sale on account$)$

$($To record rebate$)$