In: Accounting
Metlock Company sells goods to Bonita Company during 2017. It offers Bonita the following rebates based on total sales to Bonita. If total sales to Bonita are 9,500 units, it will grant a rebate of 2%. If it sells up to 20,500 units, it will grant a rebate of 5%. If it sells up to 27,400 units, it will grant a rebate of 6%. In the first quarter of the year, Metlock sells 11,300 units to Bonita at a sales price of $113,000. Metlock, based on past experience, has sold over 42,700 units to Bonita, and these sales normally take place in the third quarter of the year.
What amount of revenue should Metlock report for the sale of the 11,300 units in the first quarter of the year.