If a company receives a commission on products it sells but otherwise has no control over selling prices, it is essentially acting as an agent on behalf of another company, and would likely record revenue from these sales on a net basis.

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When a company acts as an agent on behalf of another company, it does not have control over selling prices and usually receives a commission on the products it sells. In such cases, the company would record revenue from the sales on a net basis, which means deducting the commission earned and reporting only the net amount as revenue.

If a Company Receives a Commission on Products It Sells