Freesure Company manufactures and sells commercial refrigerators. It is currently running a promotion in which it pays a $500 rebate to any customer that purchases a refrigeration unit from one of its participating dealers. The rebate must be returned within 90 days of purchase. Given its historical experience and the ease of obtaining a rebate, Freesure expects all qualifying customers to receive the rebate.
Required:
Prepare the journal entry to record the sale of a refrigerator to a participating dealer for $6,000.

Question

Quizplus · Accepted Answer

The Answer of Freesure Company manufactures and sells commercial refrigerators. It is currently running a promotion in which it pays a $500 rebate to any customer that purchases a refrigeration unit from one of its participating dealers. The rebate must be returned within 90 days of purchase. Given its historical experience and the ease of obtaining a rebate, Freesure expects all qualifying customers to receive the rebate.
Required:
Prepare the journal entry to record the sale of a refrigerator to a participating dealer for $6,000.

Freesure Company Manufactures and Sells Commercial Refrigerators