Manual Company sells goods to Nolan Company during 2017. It offers Nolan the following rebates based
on total sales to Nolan. If total yearly sales to Nolan are 10,000 units, it will grant a rebate of 2.00%. If it sells up
to 20,000 units, it will grant a rebate of 4.00%. If it sells up to 30,000 units, it will grant a rebate of 6.00%.
In the first quarter of the year, Manual sells 11,000 units to Nolan at a sales price of $110,000.00. Manual, based
on past experience, has sold over 40,000 units to Nolan per year.
Based upon the above information, what amount should Manual record as revenue based upon both the
net and gross method?
(check figure: gross method sales revenue = $107,800.00)