USA Owners Equity Account

[Student99]

Any suggestions on how to post a rebate our company received, and using the rebate as a down payment (trade in) for a vehicle purchase?
Should I Credit Members Equity with the rebate amount? And, Credit the cash (debit) to Members Draw?

 

[kirby]

Reduce the amount of the new vehicle purchased by the rebate amount

 

[Werner Reisacher]

Be careful with the accounting law. If you actually purchased the car at a reduced price (rebate) this is the maximum amount you can capitalize the car. (lower of cost or value)