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KJ Company negotiates sales contracts between Smith Company and the final customer for landscaping services. Smith Company is responsible for the services and the related

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KJ Company negotiates sales contracts between Smith Company and the final customer for landscaping services. Smith Company is responsible for the services and the related customer satisfaction. By agreement, KJ Company receives a commission of 10% on each sale. Last quarter, $100,000 of landscaping services were sold. Required: Determine whether the KJ Company should report the gross amount of the sales transactions as revenue or just the net amount. State your reasoning

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