Question - Oriole Company sells goods to Buffalo Company during 2017. It offers Buffalo the following rebates based on total sales to Buffalo. If total sales to Buffalo are 8,800 units, it will grant a rebate of 2%. If it sells up to 19,600 units, it will grant a rebate of 4%. It if sells up to 28,400 units, it will grant a rebate of 6%. In the first quarter of the year, Oriole sells 12,400 units to Buffalo at a sales price of $124,000. Based on past experience, Oriole has sold over 40,000 units to Buffalo, and these sales normally take place in the third quarter of the year.
Prepare the journal entry that Oriole should make to record the sale of the 12,400 units in the first quarter of the year. Oriole follows IFRS.