Ernesco Spare Parts sells parts to Bolt Car Repair during 2024. Ernesco offers rebates of 2% on purchases up to $30,000 and 3% on purchases above $30,000 if the customer’s purchases for the year exceed $100,000. In the past, Bolt normally purchases $150,000 in parts during a calendar year. On March 25, 2024, Bolt Car Repair purchased $37,000 of parts on account. How much revenue from contracts could Ernesco report for this transaction? $
Ernesco Spare Parts sells parts to Bolt Car Repair during 2024. Ernesco offers rebates of 2% on purchases up to $30,000 and 3% on purchases above $30,000 if the customer’s purchases for the year exceed $100,000. In the past, Bolt normally purchases $150,000 in parts during a calendar year. On March 25, 2024, Bolt Car Repair purchased $37,000 of parts on account. How much revenue from contracts could Ernesco report for this transaction? $
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 6MC
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Ernesco Spare Parts sells parts to Bolt Car Repair during 2024. Ernesco offers rebates of 2% on purchases up to $30,000 and 3% on purchases above $30,000 if the customer’s purchases for the year exceed $100,000. In the past, Bolt normally purchases $150,000 in parts during a calendar year. On March 25, 2024, Bolt Car Repair purchased $37,000 of parts on account. How much revenue from contracts could Ernesco report for this transaction? $
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