Banana Co. Has an arrangement with its customers that it will provide a 5% volume discount on its customers if they purchase at least $1.5 million of its products during the calendar year.
On April 1, 2012, Banana made sales to Fruit of $800,000 on account.
Banana valued this inventory at $500,000.
In the previous 10 yrs Fruit had purchased over $2million from Banana in the period July-December annually.
How should April 1,2012, sale be recorded on Banana's books? Provide journal entry.