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Part 3 (2 marks) NNI Company provides landscaping services to its customers. They have grown so quickly they have needed to hire KJ Company to
Part 3 (2 marks) NNI Company provides landscaping services to its customers. They have grown so quickly they have needed to hire KJ Company to negotiate their sales contracts. NNI Company is responsible for the services and the related customer satisfaction. By agreement, KJ Company receives a commission of 8% on each sale. Last quarter, KJ negotiated $100,000 of sales contracts for landscaping services. These services were all provided during the year. Required: Determine how much revenue should be reported for the quarter for a) NNI Company, and b) KJ Company. Briefly explain your answer by clearly referencing the rules for gross vs. net reporting
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