Question
Ayayai Company sells goods to Pina Company during 2020. It offers Pina the following rebates based on total sales to Pina. If total sales to
Ayayai Company sells goods to Pina Company during 2020. It offers Pina the following rebates based on total sales to Pina. If total sales to Pina are 10,500 units, it will grant a rebate of 2%. If it sells up to 21,200 units, it will grant a rebate of 5%. If it sells up to 30,800 units, it will grant a rebate of 6%. In the first quarter of the year, Ayayai sells 10,600 units to Pina at a sales price of $106,000. Ayayai, based on past experience, has sold over 37,600 units to Pina, and these sales normally take place in the third quarter of the year. What amount of revenue should Ayayai report for the sale of the 10,600 units in the first quarter of the year.
Revenue
Skysong Corp. enters into a contract with a customer to build an apartment building for $1,013,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $152,100 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $50,700 each week that completion is delayed. Skysong commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
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