The rebate on the purchase of an automobile should be recorded as a reduction of the automobile's cost.
The lower automobile cost will result in lower depreciation expense.
How do you account for the rebate on an automobile?
The rebate on the purchase of an automobile should be recorded as a reduction of the automobile's cost.
The lower automobile cost will result in lower depreciation expense.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com