I'm a complete accounting novice, so please go easy on me if there is an obvious answer to this question.
There is a direct sales company that provides a 50/50 split on all sales. Transactions are handled by the sales reps who collect the full amount and then pass on 50% of the sale to the parent company (who ships the product to the customer). As an example, when a $100 item is sold, the sales rep will collect $100 from the customer and pass on $50 to the parent company, pocketing the rest. In this example, at no point was $50 of the transaction the property of the sales representative or their business. Should this still be accounted as a $100 of revenue with a $50 expense or could it simply be accounted for as $50 of revenue?
Cash transactions are easy to split like this, but if you use a merchant account like Square, they may issue a 1099-K at the end of the year showing ~50% more revenue then you actually made. So it seems like it should be accounted for as $100 of income with a $50 expense, but I'd like to confirm that this is the "correct" way to view the transaction.