O’Reilly Auto Parts sells parts to Rick’s Car Repair with a
rebate of 2% on purchases up to $60,000 and 3% on purchases above
$60,000 if Rick’s purchases for the year exceed $200,000. In the
past, Rick’s normally purchases $300,000 in parts during a calendar
year.
On January 1, 2018, Rick’s purchased $74,000 of parts. The
journal entry by O’Reilly to record the sale includes a
a. debit to Accounts Receivable for $74,000.
b. credit to Sales Revenue for $72,380....