Sandhill Ltd. sells goods to Maxx Corporation during the calendar year ending December 31, 2023. Maxx is a key customer to Sandhill and a volume discount scheme has been established to strengthen the relationship further. The volume discount scheme is as follows: for sales for the year of 3,920 units, a discount of 4% is granted; for sales for the year reaching 5,340 units, a discount of 6% will be granted; and, finally, if sales for the year reach 8,060 units, a discount of 7% will be granted. For the first half of the year, Sandhill sold to Maxx, on account, 3,550 units at a sales price of $124,250. Because the second half of the year is slower for sales, it has been Sandhill's experience that sales to Maxx for the year will be 6,180 units. (a) Prepare the journal entries including any volume discount rebates that Sandhill should make to record the sale on account of 3,550 units for the first half of the year assuming Sandhill 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 o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record sales on account) (To record discount rebate) Debit Credit
Sandhill Ltd. sells goods to Maxx Corporation during the calendar year ending December 31, 2023. Maxx is a key customer to Sandhill and a volume discount scheme has been established to strengthen the relationship further. The volume discount scheme is as follows: for sales for the year of 3,920 units, a discount of 4% is granted; for sales for the year reaching 5,340 units, a discount of 6% will be granted; and, finally, if sales for the year reach 8,060 units, a discount of 7% will be granted. For the first half of the year, Sandhill sold to Maxx, on account, 3,550 units at a sales price of $124,250. Because the second half of the year is slower for sales, it has been Sandhill's experience that sales to Maxx for the year will be 6,180 units. (a) Prepare the journal entries including any volume discount rebates that Sandhill should make to record the sale on account of 3,550 units for the first half of the year assuming Sandhill 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 o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record sales on account) (To record discount rebate) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
N24.
Transcribed Image Text:Sandhill Ltd. sells goods to Maxx Corporation during the calendar year ending December 31, 2023. Maxx is a key customer to Sandhill
and a volume discount scheme has been established to strengthen the relationship further. The volume discount scheme is as follows:
for sales for the year of 3,920 units, a discount of 4% is granted; for sales for the year reaching 5,340 units, a discount of 6% will be
granted; and, finally, if sales for the year reach 8,060 units, a discount of 7% will be granted. For the first half of the year, Sandhill sold
to Maxx, on account, 3,550 units at a sales price of $124,250. Because the second half of the year is slower for sales, it has been
Sandhill's experience that sales to Maxx for the year will be 6,180 units.
(a)
Prepare the journal entries including any volume discount rebates that Sandhill should make to record the sale on account of
3,550 units for the first half of the year assuming Sandhill 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 o for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
(To record sales on account)
(To record discount rebate)
Debit
Credit
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