Ivanhoe Company sells goods to Pharoah Company during 2025. It offers Pharoah the following rebates based on total sales to Pharoah. If total sales to Pharoah are 10,900 units, it will grant a rebate of 3%. If it sells up to 18,800 units, it will grant a rebate of 5%. If it sells up to 30,900 units, it will grant a rebate of 6%. In the first quarter of the year, Ivanhoe sells 11,800 units to Pharoah at a sales price of $129,800. Ivanhoe, based on past experience, has sold over 42,400 units to Pharoah, and these sales normally take place in the third quarter of the year. What amount of revenue should Ivanhoe report for the sale of the 11,800 units in the first quarter of the year? Revenue $

Ivanhoe Company sells goods to Pharoah Company during 2025. It offers Pharoah the following rebates based on total sales to Pharoah. If total sales to Pharoah are 10,900 units, it will grant a rebate of 3%. If it sells up to 18,800 units, it will grant a rebate of 5%. If it sells up to 30,900 units, it will grant a rebate of 6%. In the first quarter of the year, Ivanhoe sells 11,800 units to Pharoah at a sales price of $129,800. Ivanhoe, based on past experience, has sold over 42,400 units to Pharoah, and these sales normally take place in the third quarter of the year. What amount of revenue should Ivanhoe report for the sale of the 11,800 units in the first quarter of the year? Revenue $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Ivanhoe Company sells goods to Pharoah Company during 2025. It offers Pharoah the following rebates based on total sales to
Pharoah. If total sales to Pharoah are 10,900 units, it will grant a rebate of 3%. If it sells up to 18,800 units, it will grant a rebate of 5%.
If it sells up to 30,900 units, it will grant a rebate of 6%. In the first quarter of the year, Ivanhoe sells 11,800 units to Pharoah at a sales
price of $129,800. Ivanhoe, based on past experience, has sold over 42,400 units to Pharoah, and these sales normally take place in the
third quarter of the year.
What amount of revenue should Ivanhoe report for the sale of the 11,800 units in the first quarter of the year?
Revenue
$

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