Which of the following is correct regarding vendor rebates?
A)Vendor rebates are generally recorded as a reduction from sales.
B)The rebate is never recognized until it is actually received.
Inventory 8 - 15
C)If the rebate meets asset recognition criteria, the receivable is allocated to goods sold.
D)Vendor rebates are generally recorded as a reduction in the purchase cost of inventory.

Question

Quizplus · Accepted Answer

Vendor rebates are typically recorded as a reduction in the purchase cost of inventory, as they effectively reduce the cost of acquiring the inventory.

Which of the Following Is Correct Regarding Vendor Rebates