Which of the Following Is Correct Regarding Vendor Rebates

Multiple Choice

Which of the following is correct regarding vendor rebates?

A) Vendor rebates are generally recorded as a reduction from sales.
B) The rebate is never recognized until it is actually received.
C) If the rebate meets asset recognition criteria, the receivable is allocated to goods sold.
D) Vendor rebates are generally recorded as a reduction in the purchase cost of inventory.