How to record subcontracted work in financial statements
I am going to ask this question with an example to make it easier on both parties. Please see below the questions I have.
I am Company A. I subbed a PO worth $30,000 of work to Company B. I pay Company B $15,000 of the PO. What gets reported for my financial statements? Do I record the full $30,000 in sales or is it the remaining amount of the PO ($15,000)?