During the year, Canada Ski Cross Ltd. instituted a customer rewards program. The company sells skis which are specially used for the latest type of skiing, ski cross. For every $250 of ski cross equipment purchased by a customer, the company will rebate $50 towards the cost of purchasing a ski cross helmet. In January, the company had ski cross equipment sales of $64,000. There were no helmets purchased. In February, there were sales of $32,600 and there were 135 helmets sold.
Instructions
a. Prepare journal entries for January. What is the ending balance in the liability account for the end of January?
b. Prepare journal entries for February. What is the ending balance in the liability account for the end of February?

Question

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The Answer of During the year, Canada Ski Cross Ltd. instituted a customer rewards program. The company sells skis which are specially used for the latest type of skiing, ski cross. For every $250 of ski cross equipment purchased by a customer, the company will rebate $50 towards the cost of purchasing a ski cross helmet. In January, the company had ski cross equipment sales of $64,000. There were no helmets purchased. In February, there were sales of $32,600 and there were 135 helmets sold.
Instructions
a. Prepare journal entries for January. What is the ending balance in the liability account for the end of January?
b. Prepare journal entries for February. What is the ending balance in the liability account for the end of February?

During the Year, Canada Ski Cross Ltd