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Blossom Company sells goods to Wildhorse Company during 2023. It offers Wildhorse the following rebates...

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Accounting

Blossom Company sells goods to Wildhorse Company during 2023. It offers Wildhorse the following rebates based on total sales to
Wildhorse. If total sales to Wildhorse are 8,400 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 31,200 units, it will grant a rebate of 6%. In the first quarter of the year, Blossom sells 12,000 units to Wildhorse, on
account, at a sales price of $120,000. Based on past experience, Blossom has sold over 40,000 units to Wildhorse, and these sales
normally take place in the third quarter of the year.(a)
Prepare the journal entries including any rebates that Blossom should make to record the sale, on account, of the 12,000 units in
the first quarter of the year assuming Blossom 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)
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