Question

brief exercise 18-12 Bonita company sells goods to Windsor company during 2017. it offers Windsor the following rebates based on total sales to Windsor . it total sales to Windsor are 10,500 units , it will grant a rebate of 3%.if it sells up to 18,600 units, it will grant a rebate of 4%. if it sells up to 29,000 units, it will grant a rebate of 7%. in the first quarter of the year, Bonita sells 10,400 units to Windsor at a sales price of $104,000.Bonita, based on the past experience , has sold over 42,900 units to windsor, and these sales normally take place in the third wurt of the year.

what amouny of revenue ahould Bonita report for the sale of the 10,400 units in the forst wuarter of the year

Bota Camry good to Windsor Company during 2017 with besedonte to W ratarebate of its up to 29.200 nitrat o sthenture of the year Bota 10.400 Windsor and these sales normally take place in the third quarter of the year W W 10.00 104.000 Bomba d e What amount of revenue should Bonita report for the sale of the 10.400 nits in the futuarter of the year Revenue TI Question Attempts of use

Answer 1

Answer) $96720

Explanation:

Since it is probable that Bonita will provide Windsor maximum rebate of 7%, it will recognize revenue of $96720.

Rebate = $104000 x 7% = 7280

Revenue Recognised = $104000 - 7280 = 96720