InterviewSolution
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InterviewSolution
| 1. |
What will be the journal entry for rebate in any case? |
| Answer» Rebate means Discount these two words have the same meaning So for credit sales this is the transaction Debtors Acc dr Doscount allowed acc To Sales For cash sales Cash acc dr Discount allowed acc To Sales acc For Credit purchase Purchase acc Dr To creditors acc To Discount recieved acc For cash purchase Purcahse acc dr To Cash acc To Discount recieved acc<br>Journal Entries for Sales RebatesBeyond the purchase price, it then becomes clear the customer is entitled to a 12% rebate amounting to $432. This rebate is then paid to the customer and the accounting journal entry is a debit to Sales Rebates and a credit to the Bank account of $432. | |