Our local utility is offering incentives, for accounting purposes is that revenue or a reduction in COGS?
Our local utility company is offering incentives for high efficiency system installations. We are able to offer these as an instant rebate to the homeowner in the sales process. Some are a s much as $350. If we discount a $10,000 job by $1,000 and the homeowner pays up $9,000 and the utility company pays $1,000, for accounting purposes is the $1,000 accounted for as revenue or a reduction in COGS?
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