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Question - General Supply Co. sells snow removal equipment (shovels) to King Hardware Store. It offers King the following rebates based on total sales. In the first quarter of the year, General Supply sells 200 shovels to King Hardware at a sales price of $6,000.
General Supply, based on past experience, has sold 800 shovels to King, and most of those sales normally take place in the fourth quarter of the year.
What amount of revenue should General Supply report for the sale of the shovels during the first quarter?
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"Of course we want your final conclusion and recommendation on what the company should do regarding the location issue, as well," he says.
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