Vendor Rebates Bell Corp. Has Been Purchasing More Inventory from Wood Ltd

Essay

Vendor rebates
Bell Corp. has been purchasing more inventory from Wood Ltd. in recent years. Wood offers Bell a rebate of $0.14 per unit on each unit purchased if Wood buys more than 80,000 units in a calendar year. Bell has already exceeded this threshold in the first 6 months of 2020, as it has purchased 120,000 units.
Instructions
Prepare the entry that Bell should record if it is preparing semi-annual financial statements assuming that, of the 120,000 units purchased, 40,000 units are still on hand.